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seasonal payments

Discussion in 'Commercial Snow Removal' started by cdsnow, Jan 4, 2012.

  1. cdsnow

    cdsnow Junior Member
    Messages: 14

    How many of you guys are having problems getting payments on seasonals? We set up payments 11/15 12/15 1/15 2/15 3/15 due. This account is a large account $25,000 each payment due.We got paid for 11/15 payment and now it is like pulling teeth for payment#2.
    How whould you guys deal with this? Thanks for any ideas!
     
  2. snowguys

    snowguys Senior Member
    Messages: 708

    $125,000 for plowing wow good job how late are they? what are your terms 15,30,45 days?
    is this your first year plowing for them? if you have worked for them in the past and know they are good for it i wouldnt get worried it was just xmas and the new year and alot of people take off (thats whats going on with me )
     
  3. snowguys

    snowguys Senior Member
    Messages: 708

    sorry i just saw your terms are 15 days
     
  4. edgeair

    edgeair Senior Member
    Messages: 597

    What does your contract say about late payments? Might be time to have a face to face with the manager, not sure how threatening to cut off the service will work this year :dizzy:
     
  5. cdsnow

    cdsnow Junior Member
    Messages: 14

    I worked with this company 8 years.The last 3 yrs I had to stay on them for money.terms Are set for 15th each month. thank you
     
  6. cdsnow

    cdsnow Junior Member
    Messages: 14

    The problem is,there is to many faces!We do other sites for this company some per inch/T&M
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Do you just send out one invoice with all the dates or bill them every month? Your terms and their terms are 2 different things. you might be on 15 days but they might be paying out at 30-45 days. Call the manager and get the accounting dept.
     
  8. cdsnow

    cdsnow Junior Member
    Messages: 14

    We send 5 invoices with each due date.I talked with main person today and payment is getting overnighted.We Set up terms and payment was to be paid to us the 15th each month.His excuse was because of hoildays.
     
  9. sectlandscaping

    sectlandscaping Senior Member
    Messages: 314

    I had issues with one company from the beginning. My payment terms are the 10th. They sent a invoice back on the 27th saying there not paying till it snows. I had a talk with them got both checks on the 20th the next month. They been paying since but have been 10 days late consistently.

    The rest that were paying on time seem to be paying later and later every month.

    We were suppose to get snow this weekend but not no more. This is getting crazy.
     
  10. cdsnow

    cdsnow Junior Member
    Messages: 14

    Next year we will get are contract terms more clear w/reguards to late payments.This is the sign of the times!costumers must of forgot about the fact services.Good luck to all!
     
  11. adan

    adan Member
    Messages: 36

    Sounds likes a monthly term, why aren't you charging them 1 month in advance then?
     
  12. Canplow

    Canplow Senior Member
    Messages: 289

    No money No Plow Tell them overhead is High in this business Must have Cash and or deposit before service I make all contracts void untill deposite and postdated cheques are in my hand! $125 000 tell them to have fun with a shovel ! lol
     
  13. edgeair

    edgeair Senior Member
    Messages: 597

    This year that threat might kinda backfire.... I do also require some money up front on my contracts. Too much time wasted trying to collect after the fact in the spring when there isn't the ability to cut off their service....
     
  14. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I must just be lucky with my customers I ready don't have any problem and 30 days is when I expect the money will be in,and if it comes early fine.
     
  15. cdsnow

    cdsnow Junior Member
    Messages: 14

    I spoke with head accountspayable person and he wants to set up into a 12 payment set up for accoutant perposes.We have a three year deal,we have to re-do payment terms in april.We did get are past due payment today.Thank you for ideas!
     
  16. edgeair

    edgeair Senior Member
    Messages: 597

    Thats a good idea. Hopefully that means that you start the 12 month period when they are paid up for this winter so that you don't have to carry the past due amount for a few months.

    Thats how some of my larger accounts are set up and it works well by keeping the cash flow going all year long.
     
  17. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    Another option, even for the 12 payment method is direct deposit. Most big companies will do this. I was having problems last season with a larger account........too many chiefs involved. Set up DD payment through accounts payable and never had an issue after that. Of course invoices still had to be approved, but it skipped a few steps in the long run. Initially the first DD payment was delayed, but after it was like clockwork.
     
  18. Canplow

    Canplow Senior Member
    Messages: 289

    Ya i let my residential driveways pay per plow and usually get 3 payments up front but my contract states that contract is not valid untill I receive Deposit 50%and post dated cheques for remainder 25%+25%