How are you collecting from commercial accounts?

Discussion in 'Bidding, Estimating and Pricing' started by Green Industry Pro, Aug 31, 2018.

  1. JLSLLC

    JLSLLC LawnSite Fanatic
    Messages: 15,897

    Invoice emailed, Check usually issued 8-10 days from their bank with a signature. I happened to luck out on that account. Other properties can take way longer and I stopped doing work for that reason.
     
    hort101 likes this.
  2. OP
    OP
    Green Industry Pro

    Green Industry Pro LawnSite Senior Member
    Male, from Tyler Texas
    Messages: 542


    Exactly what Todd said. I also use Stripe / Yardbook. I haven't had any issues yet. Just trying to make things more smooth on the back end of my business. Most of our customers paid on time anyways, we just had a couple of bad ones. So far all I've heard from people is a great response. They actually favor it over any other sort of payment because its easier on their part. To me, the 3% is worth having the money on time. No need to waste man hours collecting, losing money if someone doesn't pay up etc.. We've also quit providing one time services. We will do cleanups, but only if someone is interested in a maintenance plan. I've contemplated the pre paying aspect, but to me, the most simple way of doing things is card on file. Either draft after each service or once monthly. I'd like to after each service so the money is there, but its much easier for a large scale business to do it monthly so that's where I'm headed. Only problem with that is managing your cash flow.
     
    hort101 likes this.
  3. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 7,014

    Plenty of reasons not to. Most simply wont do it.

    I bill put maintenance is 30 days out of scope work can be anywhere from 15-60 days.

    Snow I’m lucky to see 60 days
     
  4. AL's

    AL's LawnSite Bronze Member
    Messages: 1,047

    All my commercials do it. Never been a problem. If you wanna wait 60 days that's cool. You're way more patient than me.
     
  5. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 7,014

    I don’t do mom and pop “commercials” probably should have included that.

    And yeah, industry standard pretty much
     
  6. gcbailey

    gcbailey LawnSite Gold Member
    from WV
    Messages: 3,128

    Depends on the size of the commercial account.... We have some large regional ones that want monthly billing. Others want weekly. Same for national accounts. When it's a company that does over a billion a year in revenue you pretty much work on their billing terms.

    I will say that "local" commercial accounts are the ones that could be a headache when it comes to billing.
     
  7. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,404

    Yea mom and pop businesses are fine with paying on my terms but if it's a large car dealership or a McDonald's I just leave it to them, they aren't going to follow my terms anyway
     
  8. AL's

    AL's LawnSite Bronze Member
    Messages: 1,047

    I have non "mom and pop" commercials that are card on file. These are large chains. Never been a problem. You can have that standard I don't want anything to do with it. But you probably make alot more money than me in general so waiting isn't a big deal to you. I need to get paid at time of service.
     
  9. AL's

    AL's LawnSite Bronze Member
    Messages: 1,047

    I do monthly for full service accounts. Charged on the day they sign up at a prorated amount then on the 1st of each month so they're never behind on payment.

    I'm not a subscriber to the idea that I have to work on someone else's terms when it comes to payment. Idc if they're doing a billion a year. In fact your probably better off setting a mandatory billing practice and sticking to it for all clients rather than giving the billion dollar clients special treatment.

    I'm just surprised at this thread man. I don't have any car dealerships or a McD's. But I have 2 factories, a mall, a school and a bank (and 3 mom and pop commercials we won't include since they don't count). It didn't get left to them. They had no problems with my way.
     
  10. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,404

    I don't do regular service for any of the few commercial I work for. It's just the ones that call for irrigation repair occasionally so I don't make a big deal of it. When I add lawn care next year I will be more strict with my terms. I don't mind waiting if it's a few times a year but for regular service id prefer to be paid asap.
     
    hort101 likes this.

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