lbmd1
LawnSite Senior Member
- Location
- Coastal NH
Any of you guys ever get a month's pre-payment at the begining of the season up front from your customers, new or old prior to mowing them for the year? Between late payments, cancelled accounts owing money, etc.., it seems that we are a trusting lot working for a month for free on goodwill. Like a lawyer who accepts a retainer before starting work, would it work for us and what would be the objections on the customers's standpoint. You would keep it for use against their last months mowing but if they showed signs of problems, you would have it to work off from. It sucks always floating $15-$20 grand a month in receivables. It would be nice to say send out your contract renewal along with them sending in their first's month's mowing charge for you to have working as a cash flow for you as opposed to them earning interest every day they hold onto their money. Think of starting out each new season with say $15,000 as a line of credit or investing it in a safe investment fund. Sure would make the begining of the year a little less stress free. I had a new customer ask me the other day prior to mowing if I needed any money before I started, next year I'll say yes to every new one. Thanks!
Mike
Mike