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Whats you're payment terms?

Discussion in 'Lawn Mowing' started by LB Landscaping, Mar 6, 2005.


Whats you're payment terms?

  1. Upon receipt

    7 vote(s)
  2. 14 days

    18 vote(s)
  3. 30 days

    17 vote(s)
  4. I want my money when the works done!!!

    4 vote(s)
  1. LB Landscaping

    LB Landscaping LawnSite Bronze Member
    from Maine
    Messages: 1,309

    Sending out renewal contracts and we have always had a 14 day payment date. A couple of customers that travel alot were asking for longer terms, what do you offer?
  2. aries

    aries LawnSite Senior Member
    from nj
    Messages: 334

    my term's are 15 day's for lawn care service only any work being done is to be pd in 1/3's and final payment when job completed!
  3. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    LB, We just sent ours out last week and made one stipulation. Because last year slow payers really hurt us a couple of times. This year we just simply put a pay date on the contract and if not paid by certain date then a 3% service charge will be added for residential and a 5% service charge for commercial, also for commercial we off a 2% early payer discount. Last year we told these people over and over again but this year it will cost them. If you don't pay your electric bill or gas bill they charge you then shut you off. So if they can do it why shouldn't we.
  4. Lawnchoice

    Lawnchoice LawnSite Senior Member
    Messages: 781

    7 days.

    No exceptions !

    Well if they are on vacation they let us know. We try to keep our communication with them open as much as possible.
  5. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    Residential yearly service contracts are billing at the end of every month with payment due within two weeks of invoice date. For commercial yearly service contracts I tend to go with their schedule. Generall speaking, I bill at the end of the month and get paid within 4 weeks.

    Any one time jobs, or jobs requiring material are 50% up front and balance due upon completion of work. However, for customers that have been with us for multiple years and consistantly pay on-time I will just wait till the end of the month and add it to that months invoice.
  6. LB Landscaping

    LB Landscaping LawnSite Bronze Member
    from Maine
    Messages: 1,309

    Nobagger, I started the same thing this year for all plowing accounts. Seems like the winter freezes peoples brains and they forget to pay us. They certainly don't forget if we skip them though :D .
  7. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    LB you said it, one of our first commercial accts was a state agency, for salting and plowing their original service didn't bother to show up after the first couple of storms, the ones w/ wet heavy snow, needless to say they had a build up over 4 inches of ice so we did our job they didn't like the final price of $718.00 thats after 2 1/2 tons of salt and the plowing to go along with it so I sued them and got my $$$$ payup
  8. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    2 answers for us. we ONLY bill maintenance, which is considered late after 10 days. EVERYTHING else is due upon completion. :)
  9. LB Landscaping

    LB Landscaping LawnSite Bronze Member
    from Maine
    Messages: 1,309

    Paponte, do you enforce a late fee. I bill when work is done too but I am looking more at monthly maintenance
  10. Branchland

    Branchland LawnSite Senior Member
    Messages: 354

    I give til the 15th on my invoice but don't start calling til after it's been 30 days. On known good customers I might not call but just send a reminder with the next months invoice incase they forgot or stuck it somewhere. This year I will start using a late fee with some of the constant late payers.

    Commercial accounts pay by the 30th. On regular much jobs and such I bill at the end of the month with my regular customers. If it's a one time customer I get paid upon compleation. On larger jobs I get half up front and the rest when done.

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