Prepayment Deposit


LawnSite Senior Member
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!



Millenium Member
I bill on the 1st of the month with invoices due on the 15th, if someone fails to pay I would only be out 2 mowings at the most. I have had people not pay a few years ago, but it's not been a problem lately.


LawnSite Bronze Member
On the budget customers that have a fixed monthly payment, they pay 8 equal payments on the 1st of April-November.

The rest are billed on the 1st and due the 20th-- for the work we're doing THAT month.

Waiting until the end of the month to bill and then waiting a few more weeks for payment isn't fair to you.


LawnSite Silver Member
Central CT
Half my customers are billed the end of the month, the other half are COD. I have one customer who throws me $250 at a time and tells me to let him know when its almost gone and he sends another check-he's always away at his condo in Hilton Head Island or at his vacation home in Dutch Antilles.



LawnSite Senior Member
Columbus Ga
Her's what i do to new customers new contracts I take there yearly contracted services divides by 12 get a check for
1 months service and if they pay on time they are done paying before the contract is year new contract..
aonther check...if there is a payment problem stop serviceing before they go 60 days and you wont be out so much money. it all depends on your customer you them better than they know themselves...if they get out of hand and you don't drop them before the contract ends and you want to keep them collect two months up front and them give them a option to take remaining balance and make 12 payments which
would lower there bill every month or make 10 payments and possiable have the same problem but your allways 30s ahead.

look at this .
why are they late .
can they not afford service
do they sound like they have more money going out than in
most of the time when your a small co. and you try to work with the really GOOD FOLKS it pays off.