[Port City Lawncare]

I'm wondering if I should switch from 30 days to 10. I'm not necessarily having slow paying customers, as most leave the check for us the day we come, but some of the new customers are waiting until the deadline to pay up. Is 30 days the standard rate in which most LCOs give customers time to pay?

 

[bruces]

My terms are 15 days from statement or invoice date.

If you bill monthly and give them 30 days to pay, you could have 2 months work outstanding before you get paid (the month you billed for plus the 30 days you are giving them to pay.)

I am considering changing to sending out half the statements on the 15th and half at end of the month next season.

 

[Port City Lawncare]

That's exactly what's going on Bruce. I was thinking about switching it over from 30 to 10. I just feel that 30 days gives the customer to much time to forget.

 

[Expert Lawns]

I bill bi-weekly and payment is due within 14 days. For every week they are outstanding, there is a $10 late fee added. After 30 days of no payment, services are stopped. (each week i send them a letter notifying them that they are outstanding and that another $10 has been added to their balance) I've only had to do this a handfull of times thank god. Most customers are great about paying on time.

 

[tiedeman]

mine is 18 days. I tried the whole 30 days thing about 3 years ago...very bad idea.

 

[Tim Canavan]

For all of my maintenance agreement customers, I bill on the 20th day of the month due on the first day of the next month. So for an August bill, I would bill on Aug. 20 due by Sept. 1.
As for my customers who are not year round, I bill at the end of the month, due by the 10th of the next month. so for an August bill I would bill on Sept. 1 due by Sept. 10.
Any one who is late by the time I bill again, I will add a 10 dollar late fee. If I do not see something by that billing cycle, service is stopped.
I have had a huge problem with people not paying on time this year. I even got a credit card machine so people can pay me on that. It sucks when 60% of your cusomers all decide to be late at the same time.
I even had a customer once tell me that the lawn guy is just the last guy to get paid. People will pay their cable or cell phone bill before they pay you. I told her that maybe she can't afford a lawn service if she can't pay on time. She's payed on time since then.

Does anyone bill for the month up front? I am thinking about it. At least when they are late it will be like they are on time.

 

[BSDeality]

i split my customers on the 15th and 31st. i use a net-15 pay up or get slammed with a late fee. Like you said, "oh i have 30 days to pay this, i'll just put it behind all my other bills for the month." This also provides me with a steady flow cash through the month. once i hit 30 customers i'll move to a 4 way split in billing dates and really have an even cash flow.

 

[tiedeman]

Originally posted by BSDeality
i split my customers on the 15th and 31st. i use a net-15 pay up or get slammed with a late fee. Like you said, "oh i have 30 days to pay this, i'll just put it behind all my other bills for the month." This also provides me with a steady flow cash through the month. once i hit 30 customers i'll move to a 4 way split in billing dates and really have an even cash flow.

thats a good idea for the 4 way split. I have though of it before but I just thought that it would get confusing. How do you handle with, like A-F, G-N, O-S, T-Z?

 

[BSDeality]

i use Gopher 2003 software for my billing and scheduling and it allows me to assign customers to certain billing days. then on the 7th i'd hit the generate button and it'll print up all the invoices for the correct customers. check it out if you want here @ Gopher's Site

 

[tiedeman]

I am going to have to see whether or not my Quickbooks does that

 

[Rustic Goat]

Due upon receipt.

Then it takes them about 10 days to send payment, after 10, I start calling/dropping by with my little paw held out.

 

[BSDeality]

due upon receipt means you get a check when you hand them the bill. what you're doing is net-10

 

[mowerman90]

When I first started in this business I got burned bad by a custom home builder. He still owes me over $1700. I learned my lesson and for the last 14 years everybody is on contract and everybody gets billed for the month in advance. I send out Augusts statements on the 28th of July and they are "Due upon Receipt" or no later than the 10th of the service month. Any extra work that is done is added and paid in arrears like normal. IF it's late I have the option of suspending service, adding a $10 late fee, or canceling service altogether. I've done it this way for 14 years and have never had a problem. For those of you that are thinking "wow, my customers would never go for that", let it be known that I've only had 2 potential customers that questioned this setup. One of them has been with me for over 9 years now and the other chose not to use my services. Fine by me. They've been through about 6 different services so apparently they're hard to get along with in the first place.

 

[Tomt]

Upon receipt for me too. It still takes too long for some to pay.

 

[DUSTYCEDAR]

upon receiptpayup

 

[Gr grass n Hi tides]

Due upon receipt. I've already put in 30 days work & expect to be paid promptly. My clients are pretty good about cutting me checks right away.

 

[Advanced Lawncare]

I started with net 30, but it did not take long with a slow payer to change to net 15. Too much risk of nonpayment, also helps cash flow with new operation.

 

[GLAN]

I know an LCO that everything they have is 1 month in advance. Not paid by the end of the month service is susspended. Nothing out of their pocket.

Myself. Only commercials that have a monthly payment are 1 month ahead. My residential invoices show due upon receipt. As long as they are paid by the time we do next invoices, that's fine.
If not they get a call. Call the next day till I talk with someone. No one to talk to a suspension letter is sent.

I realy have no problem collecting, not many are late. So far had to suspend on 3, only 1 week.

 

[dvmcmrhp52]

Net 15

 

[Turfdude]

I'm considering another tattoo - likle Jesse James

Pay Up $$$ on my palm - works for me

Seriously, we have a 30 day notice in w/ our invoices. Some folks send in day they receive bill. Most mail checks weekly or bi-weekly. I know some write checks but once per month. Part of your job is to figure who pays well and eliminate late payers.

Jim Lewis has had a few excellent threads regarding this matter and the use of Paypal. Do a search, or e-mail him for the info.