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How long to pay before stopping service?

Discussion in 'Pesticide & Herbicide Application' started by PHS, May 7, 2008.

  1. PHS

    PHS LawnSite Senior Member
    Messages: 724

    For those that are doing regular service visits to a property (weekly, bi-weekly, monthly), how long to you give customers to pay before you stop sevicing their property?

    I'm trying to speed up the payment process and have added the disclaimer to all of my invoices that if payments aren't recieved within 30 days of the invoice date service stops. Is that too long, too short? I haven't had too much of a collection problem in the past but I'm adding lots of new customers right now and want to set a more firm policy.
  2. Victor

    Victor LawnSite Bronze Member
    Messages: 1,430

    I give customers 15 days from the application date to pay PHS. The moment that they have an overdue payment, is the moment I suspend service. If they're late too many times, they're not my customer any longer.
  3. tlg

    tlg LawnSite Senior Member
    Messages: 651

    For lawn applications payments are always due at time of service. We consider them late after 10 days. Statements are then sent. We may service " good " customers with a balance for there next application. This balance, however never gets carried more than 60 days without a notice saying service has stopped until the balance is paid. Any customer that doesn't pay within 90 days is subject to collection.
  4. (wi) Roots

    (wi) Roots LawnSite Member
    from 9
    Messages: 152

    I've implemented a .06% late fee after 15 days. If it pass this stage in two late payment in a row I up there price of application by the same .06% late fee. So, my 58.00 dollar application now becomes a 61.48 application. If they quit, I figure I'm better off. Since I've impliemented this I've lost 2 customers. One, was always late, who called me to complain on weeds that weren't there, and the other, was always wishy washy on what they wanted.
  5. PHS

    PHS LawnSite Senior Member
    Messages: 724

    Thanks guys, I think I'm going to go to 15 days or 10 business days and start leaving invoices on my last day of service instead of mailing/e-mailing invoices. If I invoiced at the end of the month and I gave them 30 days to pay and they didn't, I potentially could end up servicing the property 8x without pay.

    Think I'll add a % late fee for 30 days over too.
  6. Lawn-Sharks

    Lawn-Sharks LawnSite Senior Member
    Messages: 912

    Bill them on the 15th of each month and by the 5th of the next month if we have not recieved payment, service is then interupted until it is paid in full
  7. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Messages: 5,954

    Ditto with us, but commercial accounts & residential customers who get a monthly check (taxpayer money) are on a net 30 days.

  8. jbturf

    jbturf LawnSite Bronze Member
    Messages: 1,502

    just curoius, legally do you need to notify your customers before hand, if you plan to charge a late fee or interest on any past due amounts?

    or do you just set the terms on their invoice
  9. humble1

    humble1 LawnSite Silver Member
    from MA
    Messages: 2,519

    i always have it on the back of the contract.
    I have a line on front where they sign their name that also says i have read both sides of this contract and understand the terms and prices set forth herein you are authorized to proceed with said work.

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