Slow paying accounts


LawnSite Member
Like everyone else in this business I have some customers who pay VERY promptly and some who are very slow to pay. I try to send a monthly statement to let the slow pays know that I haven't forgotten about them. I haven't had to eat too many jobs but I need some advice as to getting money out of the slow payers quicker without pissing them off.


LawnSite Member
East Tennessee
If they don't pay like they should I wouldn't worry too much about pissing them off!!!! You really don't need a customer like that anyway,maybe some of your &quot;good paying&quot; customers have some friends that need service and they might pay better! <br> Just a thought

GrassRoots Lawn Care

Late fees work great. $10 for any bill past due. You'll be surprised how quick they get the check to you then. <p>----------<br>Mike Reynolds,<br>GrassRoots Lawn Care, Florida


LawnSite Senior Member
southern ohio
Decali:<br>The single most effective thing we have ever done is send an invoice for interest in the amount of 1 1/2 % per month for every dollar over 30 days. Billed monthly. Everyone does it and it works even better than a lawyer in most circumstances. Afterall, they can't just stiff you, especially if they don't plan on going bankrupt.<br>You may as well make some money on the money that is late. We have 8K+ over 30 right now and they are paying interest untill the checks come in. We had a company owe us 8,500 for 9 months and they paid 18% interest and the principle.<br>People will not be as offended as you may think. Just to clarify, that's 1 1/2 % per month or 18% per year. The law allows more than that without it becoming usury, Maybe 1.9% or close. We use 1.5. <br>Go for it! Become your own credit card.

gene gls

LawnSite Gold Member
OSC is right,I went to 1 1/2% interest charge this year and my late payers now pay by the 20th.My late payers were well to do customers and also had their own busineeses.I also sent a note explaining my monthly situation befor I instituated the interest charge. If you give an inch some one will always want two inches.
Decali<br>Another vote for charging interest. Since I've started doing this 3 years ago, i've cut my slow payers by more than 75%. Anybody complains,be nice but firm, explain that you can't support your business until you're paid.<br>Just a couple more suggestions. Do you have a billing policy? Do you use a due date on your invoice? With your next invoice, Attach a copy of your billing (collection) policy. Explain that you will be charging interest on any delinquent account. For example,here's my policy:My payment policy is your bill is due upon generation of invoice and delinquent after 18 calendar days. Accounts may be charged interest for late payments. The interest rate will be 1.75% per month (21% per annum) with a minimum service charge of $.50. Accounts over 60-day’s delinquent may have service terminated. A returned check fee of $15 will be added to your bill and service suspended immediately if your check is returned to me by my bank. Any extra service, unless other arrangements have been made are due upon generation of bill.<br>You'll find that people hate to pay interest.<br>John<p>----------<br>J-LC Landscaping & Maintenance Gardening<br>C-27 Ca Contr# 770044


LawnSite Fanatic
N.E. Wisconsin
At the bottom of th bill put the terms of payment. I.E. net due 15 days - after 15 days add 10% to balance to 30 days. 31 days + add 25% to balance after that either you make mow money or someone else is mowing and you have a lien. Good Luck.

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