Past due cutoff

Discussion in 'Business Operations' started by lawncare3, Aug 21, 2006.

  1. lawncare3

    lawncare3 LawnSite Bronze Member
    Messages: 1,981

    I just wanted to know what your past due cutoffs are? I have a 10 day because I am tired of doing $#%^ for free. If it's someone I've had for quite sometime and have always paid ontime I dont worry as much. But these newbies this year are starting to piss me off. What's your .02?
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    First it's No check, No cut - Meaning if I don't get paid for the last cut, I don't show up again. Yup, only one cut is all you get.
    Then, it's 30 days, 55 / 60 / 65 days and then to the statute of limitations like so:
    30 days - Second bill with note 'prompt payment prevents late fee.'
    55 days - A terse letter letting them know the poop is about to hit the fan in quick succession so pay now or face the music.
    60 days - Third bill with $45 late fee and note 'prompt payment prevents legal action and collection and credit record issues'
    65 days - It's turned over to a collection agency.
    Then I wait, and if I never get paid IF in any 3 year period of time the amounts due add up to something considerable between the whole bunch, I take the whole lot to court, so it can come back on them even 1-2 or 3 years down the road.

    Like yourself, tired of working for free.
  3. Green Pastures

    Green Pastures LawnSite Silver Member
    Messages: 2,457

    I only work for folks willing to sign a contract.

    I collect payment at the contract inception so I'm always paid ahead of time.
  4. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Even though in another thread I posted my biggest downfall is AR's, I have never cut anyone off in 13 years.

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