Overdue Invoices

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

  1. oqueoque

    oqueoque LawnSite Platinum Member
    Male, from Jersey
    Messages: 4,543

    It is better d
    They're not deadbeats, they're just dead & would pay you if the could. I can see where getting paid ahead of time eliminates that problem.

    Especially if you don't care too much about your will, it's better to die owing money to the bank or others, then the bank or others owing it to you.
     
  2. That Guy Gary

    That Guy Gary LawnSite Silver Member
    Messages: 2,851

    I haven't implemented it for myself but I like the idea of 1st of the month, net 15 prepaid billing.

    They can't really complain about paying for 2 weeks of service they haven't received when they can receive 2 weeks of service before they pay, right?
     
  3. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,397

    I think for a recurring service there is nothing wrong with net 15 or even 30. I think it is more similar to a phone bill than a mechanic or dentist who aren't monthly services and demand payment at time of service.

    None the less when I get into mowing next year I will not be letting customers get that far ahead of me. There will be prepay and automatic CC billing. If someone wants to mail a cheque it will be something like bill on the first day of the month and service is cut off before the 3rd week/cut if payment isn't received by the 20th day.

    Also, with the reputation given to us by idiots, I am not surprised people feel uneasy about prepay and keeping their card on file for auto pay.
     
    landscaper22 likes this.
  4. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,397

    Damn man $3,000 seems like a lot for 200k gross. What are your main services?

    I will probably pay that in CC fees but still... I was upset when I ended up with .02% on $160,000 last year and hope to end up with about the same this year.

    Although all it will take is for one person to burn me on the final payment of a medium sized landscaping job to put us over the 1% bracket.
     
  5. Charles

    Charles Moderator Staff Member
    Messages: 11,789

    Thinking about the % may make it easier to tolerate. Well not for me it wouldn't:laugh:. Think about it. That is $30000 over 10 years. What could you have done with that $30000? Bought 3 new zero turns! Even 20000 or $10000? I would make some billing changes. That is grand theft !:dizzy: Collections are a major part of any business. Don't stay on top of it and can easily do you in. This is why many large business hire full time collection agencies and security personnel
     
    Mitty87 likes this.

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