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Interest anyone?

J Haugner

LawnSite Member
Location
Bellevue. WA
Who charges finance charges? And what rate per year?
How many days does your company allow for clients to pay, from time of invoice or statement sent out?

It seems to me if you charge some clients per visit and you cut on the 1st week of the month. Send out statements on the 31st of the month and then the client thinks you are a credit card company and take another 25 to 30 plus days to pay you after they receive the bill. You have just given them 55 plus days on their money for the first cut. By that time many payrolls and other bills go out by us.

Basically how much interest and how much time before you start that clock?

Oh, and does that make those slow paying clients pay sooner the next billing cycle or complain?
 

bobbygedd

LawnSite Fanatic
Location
NJ
either they are on monthly flat rate plan, and pay in advance, or, if they are just cut, it goes like this: say, april, we cut the first 2 cuts, 7th +14th, bill is sent out on the 15th for the 7th, 14th, 21st, 28th, and is due may 1st. 3% late fee if late, $40 filing fee for each late notice, certified letter, collections letter, trip to police station, etc.
 

ranger520

LawnSite Member
I bill monthly and send out the bill the second week of the month. That way they have a couple of weeks to pay before the end of the month. If I dont see the money by the end of the month I give them a reminder. This has worked great and if they pay right a way I am the one collecting interest.
 
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