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Overdue Invoices

Discussion in 'Business Operations' started by Credsfan03, Aug 12, 2018.

  1. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,424

    Put that on the invoice, sorry to inconvenience you, but due to many previous clients dying before their bill is paid we will need prepay or payment at time of service. I know you think you will live forever, but we can all see that you already have one foot in the grave. We would appreciate not having to collect off of your greedy children after waiting for your will to be settled. Thank you for your cooperation.
     
  2. Charles

    Charles Moderator Staff Member
    Messages: 11,810

    99.9% of mine are pay as you mow. Exception being large commercials. By the end of the month, they pay me in person. Out of towners pay in advance. I am on their case if they haven't paid before the next mow. I don't go by days. The farther people get behind, the less likely they are going to ever pay you. I don't like people owing me money. I am not in the loan business. If I were, then I would hire someone who could break their leg if they didn't pay:laugh:
     
    hort101 likes this.
  3. Todd73

    Todd73 LawnSite Silver Member
    Male, from Florida
    Messages: 2,585

    It’s not called God’s Waiting Room for nothing!
     
    hort101 and oqueoque like this.
  4. CrystalCreek

    CrystalCreek LawnSite Bronze Member
    Messages: 1,944

    If customers don't pay on time I salt their lawns. Its not illegal and the results are devastating.

    Honestly the only problem customers are the fert only customers. I really think I am dropping that line of service next year. Just not worth the headaches chasing these morons around. Its easy to not pay a bill when you know the guy only comes around once every other month.

    I was kidding about the salting of the lawns....maybe.....
     
    hort101 likes this.
  5. Digitaria Sanguinalis

    Digitaria Sanguinalis LawnSite Senior Member
    Messages: 490

    I'm a fan of Round Up water balloons.
     
  6. kemco

    kemco LawnSite Silver Member
    Messages: 2,618

    FWIW my collections company says that before 60 days past due you might be considered badgering them. Or something to that effect. Which is weird to me because I can't tell McDonald's that I'll pay later. Know what I mean.
     
  7. landscaper22

    landscaper22 LawnSite Bronze Member
    Messages: 1,787

    It's just one thing I don't currently have much of an issue with. Many of mine pay at time of service. If they happen not to be home I will either invoice them or wait until next visit and just get paid for both services then. Of course my monthly paying customers work a little different.

    I don't know the best option. Sounds like you have a bad batch of customers. lol...Late fees usually just make them mad. Of course I don't really care if they get mad if they aren't paying. They will probably cancel service. But then you can keep sending them reminders of the balance due and maybe they will pay. If not get your lawyer to send them a letter.

    I have never suspended service, because I realize that the customer is going to be a smart butt about it most of the time, and isn't going to pay me extra for it being overgrown when they finally decide to pay. If I am going to suspend service I am just going to drop them for good. They may still not pay, but sometimes you just have to cut your loses and not dig a bigger hole by continuing to service.
     
  8. kemco

    kemco LawnSite Silver Member
    Messages: 2,618

    Another FWIW I write off about 1.5% of gross per year averaging the last few years in bad debt. So for us that's close to 3k I eat each year . I'm getting sick of it too.
     
  9. landscaper22

    landscaper22 LawnSite Bronze Member
    Messages: 1,787

    That's the bad part about this type of business. All these other businesses, including Mcdonalds, lawn equipment companies, landscape supply companies, etc get paid as soon as a purchase is made. We have to pay all of our expenses on the spot unless we put them on a credit card and that buys us a little time. But we pay up now while our money seems to take forever to get in our hands. It's okay as long as you plan for it, but yet it still sucks, especially when you are doing bigger jobs.
     
  10. landscaper22

    landscaper22 LawnSite Bronze Member
    Messages: 1,787

    I think for me it has really helped situations to be particular about the customers I get. I think word of mouth customers and friends of customers and family will usually pay. The larger you get though, the more you will run into people you have no connection to and you take more of a chance. I guess it's just best to be strict about billing and not have due dates that are so far out. What really sucks are the accounts that may be billed monthly at the end of the month NET 30. You have two months of services in before you even realize there is a payment issue.
     
    hort101 likes this.

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