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Payment turnaround time for plowing

Discussion in 'Business Fundamentals' started by plowbum, Mar 6, 2010.

  1. plowbum

    plowbum Junior Member
    Messages: 9

    Just curious how some of you handle your plowing billing? Because of cost of operation I let them know in contract after every storm I will bill out within 7days and payment is due upon receipt of course some still take they're time and it pisses me off at times but what can you do?? Do any of you charge ahead for standby or monthly fees.. any input would like to hear from you.. Thanks.
  2. Camden

    Camden PlowSite Fanatic
    Messages: 6,594

    I send out invoices on the 1st of each month and payments are due on the 30th of the same month.
  3. snowdreaming

    snowdreaming Member
    from Boston
    Messages: 45

    I have seasonal contracts first week of December, third week of December and second week of January. The whole point is to get paid before the end of an early winter like this one we have here in Boston. For people who pay per storm they need to have a credit card on file or prepay in $100 checks so I can deduct it out of that check.
  4. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Bill within three days after event, Net 30. Residential and commercial.
  5. Dewey

    Dewey Senior Member
    Messages: 438

    My per storm customers know that payment is due after each storm .... About a third of them send me a check within a few days the rest I bill monthly, works for me.....
  6. BuffaloJoe

    BuffaloJoe Member
    Messages: 51

    Usually 30 days, if its late I and 2% every 30 days late. Technically they don't have to pay it, but its a good motivator to do so. I have found the more money the company has the slower they are.
  7. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    I bill net 30 and claim to charge a late fee, but it usually doesn't get to that. A few of my summer accts it does on occasion. One of my plow accts is net 45 and its a PIA. I try to bill at least every couple weeks just to get things rolling, and in my contract I actually state that I bill per event. Nothing I can do about it, its a big company and that's how they do it. Its either wait or lose the account to someone that will. I'm patient with them.
  8. YardMedic

    YardMedic PlowSite.com Addict
    Messages: 1,266

    I have a different philosophy than many, I think. I bill on the 1st of each month, net 10. My belief is this: I've extended service credit to you for the entire month prior to billing, so it's not unreasonable to expect payment within 10 days. I rebill on the 14th of each month with a $5 rebilling fee. My commercial contracts are seasonal, so this doesn't apply. I have 35 residentials, and there ends up being a few late folks every couple months or so. Much of it is training them. I write almost the exact same blurb in my contract about extending you service credit for the month before, and my people feel it's reasonable.
  9. Neige

    Neige Sponsor
    Messages: 2,195

    All our accounts are seasonal.
    Our large accounts are the 15th of every month, over 5 months. Nov.- March.
    Our medium accounts Nov. 15, Jan. 15 , & March 15.
    Our small accounts 1 payment Dec.15
    Extras like salting and hauling are billed the first of every month.
    Our residential are prepay for the season, or a postdated check for Jan.1st. I will not service a resi without having their check.
    All of this has cut back a ton of paperwork, and chasing down bad debts. Out of all my residential work I only had 2 bad checks, 1 we stopped service and the other came and paid with a certified check. This system has eliminated any cash flow problem we had in the past. Its a great feeling that, come next week all my snow service will be paid for.
    There was a time when I would be chasing up to 80 resi for months, and not get paid by 50 of them.
  10. Snowpusher78

    Snowpusher78 Junior Member
    Messages: 18

    I bill the first of the month and give them 15 day to pay if not a $15.00 late fee is applied. Gets 90% of my customers to turn the checks right around, usually get a few that hang on to get for 30 days but i guess i do get there money. At least adding that late fee possibility in there gets most to pay right away.
  11. snocrete

    snocrete Banned
    Messages: 2,862

    X's 2....I like getting the bills to them as soon as possible after events. I only have a couple snow accounts that actually take full advantage of the 30 days, but there small ones and its not that big a deal. Most pay within 2 weeks from billing.

    Same here.....with all of my work (summer/winter)
  12. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    I bill as soon as possible after every storm. I only do commercial and they are all net 30 with the exception of one which is a net 45.

    I wouldn't mind being paid faster but in the four years that I have been servicing these accounts, I have never had one late payment.