Payment due at time of service

Discussion in 'Business Operations' started by fivestarlandscapes, Oct 8, 2017.

  1. fivestarlandscapes

    fivestarlandscapes LawnSite Member
    Messages: 59

    Hello all. 2018 will be my 8th season full time. From the beggining i have billed monthly. I bill at the end of the month for all work completed within that month and payment is due within 15 days. For the most part i have had very few issues other than some slow payers but usually nothing goes over 30 days. I have been picking up new mowing customers from referrals or from my website but they all are slow payers. Im thinking about instituting a payment due at the time of service requirement for all new customers or existing slow paying customers. Basically they either pre pay or have their card charged upon service. I know others are sucessfully doing this and I think it would only benefit my company. Please share your thoughts on this subject as getting paid is the real reason we are out busting our butts everyday.
     
  2. Rockchoplawn

    Rockchoplawn LawnSite Member
    Messages: 164

    I have the same issue- billing at the end of the month then dealing with slow payers... From August on, all new clients have been being billed in advance for the month. So far, no one has complained. I also informed current clients that next year we are changing billing; Invoices will be sent via email at the beginning of the month. The customer will have 24 hours to review the invoice before I charge the card. For monthly mowing we are only accepting cc through this method. If a client wants to pre pay for the whole season, we will accept check.

    So far no major push back. I was more worried about switching current clients, and could care less about new ones who are not on board. Eating the 3% fee is definitely worth not having to chase down money
     
    North Idaho Dream likes this.
  3. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,096

    I've instituted a policy where all new customers pre-pay, then their credit card is auto billed monthly after that. I've done that with four new customers now and it's working great knowing that I've already been paid for the work I'm doing and knowing that I won't have to chase down payment.

    Current customers will be going to CC auto draft at the beginning of the 2018 season.
     
    firecutgrass likes this.
  4. BJWLAWNCARE

    BJWLAWNCARE LawnSite Senior Member
    Messages: 596

    What do you guys use as your CC processor?

    I have a few..... lawyer, cop amoungst others who are past slow pay status.
     
  5. Rockchoplawn

    Rockchoplawn LawnSite Member
    Messages: 164

    I use stripe through Yearbook. Has worked really well for us these past two seasons.
     
  6. JMK26

    JMK26 LawnSite Bronze Member
    Male, from Missouri
    Messages: 1,915

    Just my perspective. I have had clients pre pay me because they went out of town for the summer and at the time i was thinking "awesome!"...for one it feels good to be trusted like that.....but after a few weeks....it felt like I was mowing for free.

    I just don't like the feeling of me owing someone else....I'd rather people owe me.....It's like borrowing money to me.....whether you say "Hey can I borrow $50 for gas money" or "Hey can you prepay for mowing"....to me it is the same thing....I owe the guy lending me money for gas $50....I owe the client work for lending me $200.....

    I give people a choice....I invoice on the 1st and 15th....the client gets the choice because of their budget.....most likely to pay....everyone's habits are different, so with me paying me is part of their habit of writing out all bills on the 1st or 15th. Very few late payers....Net is 10 days....each year of shortened the NET....I'm thinking 7 days next season.
     
    DuallyVette, maelawncare and JLSLLC like this.
  7. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,096

    I'm also with Yardbook/Stripe. I've also used Square with equally good results.
     
    firecutgrass likes this.
  8. fivestarlandscapes

    fivestarlandscapes LawnSite Member
    Messages: 59

    Good stuff everyone... i know many are having success with yardbook. I may seriously consider going with stripe/ yardbook next year. I also would rather have my money at the expense of 3% than at the expense of chasing people or working potentially for free.
     
  9. BJWLAWNCARE

    BJWLAWNCARE LawnSite Senior Member
    Messages: 596

    My wife is an accountant. She built excel spreadsheets for me. I have to pull invoices to bill. It's always the same ones who slow pay. I am going to weed them at at the years end.
     
    Bcoogan23 likes this.
  10. North Idaho Dream

    North Idaho Dream LawnSite Senior Member
    Messages: 658

    For our company, the 2018 will change for new customers only. I also bill out on the 1st of every month for the previous months service. We have a great base of customers who pay by the 10th and have a handful (mostly Property Management Companies) that I have to remind on the 15th.
    I do have an issue with slower payments toward the end of the season...its only the 8th but waiting on 1/2 of what I billed out. $1200 roughly is 60+ days past due... this is ALL from 2017 new customers.
     

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