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Discussion in 'Business Fundamentals' started by chev2500plow, Dec 28, 2007.

  1. chev2500plow

    chev2500plow Member
    Messages: 40

    How long do you give your customers to pay you, and do you charge late fees if so how much do you charge them
  2. Clapper&Company

    Clapper&Company PlowSite Veteran
    from NE OHIO
    Messages: 4,413

    We put " Due on Rec" on our invoices but we give them 30days to pay.

    Our Seasonal's are due on the 15th of each month.
  3. StratfordPusher

    StratfordPusher Senior Member
    Messages: 960

    Same Here

    Same here... but we add 3% late fees after 30 days....... we don't get many late payments,,,. wesport

  4. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    we do that too, due on receipt, 30 days before the late fee kicks in. This set of invoices only has 1.5% a month printed on it and honestly that's not enough. After these are gone, the next set we have printed will say 3% a month. After 2 to 3 weeks if it hasn't shown up, I give a reminder call. "hey, did you get that bill?" friendly type (and things do get lost in the mail, it happens to all of us).

    after 32 days, I put out an official "late notice" stamped letter. "Your payment is now 30 days overdue, please remit payment immediately". (invoice number, amount, date of service and the 1.5% late fee.
    65 days gets the same thing, plus another 1.5% on top.
    75 days gets a last call.
    90 days gets another letter that's sent registered mail plus another 1.5%
    at 100 days I just turn it over to a collection agency and write it off. (hasn't happened yet in 5 years, but that's our policy)

    I don't do business with people who are over 30 days overdue. If it's snow removal, it stops until I'm paid. (it's never happened, but again, that's our policy).

  5. Kennedy81

    Kennedy81 Senior Member
    Messages: 125

    I drop off the bill within 5 business days of plowing, they then have 10 business days to pay the bill. More than two deliquent bills will result in a discontinuation of service until all bills are paid in full. Starting at 30 days late a 10% is added, and then another 10% added for every 10 days until paid.
  6. carcrz

    carcrz Senior Member
    Messages: 295

    I do the same here
  7. chev2500plow

    chev2500plow Member
    Messages: 40

    Thanks for all of the input.
  8. cod8825

    cod8825 Member
    Messages: 91

    Do any of you guys offer any discounts like 5% off if paid within 10 days or such.
  9. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056


    I have to write this because just saying NO would not let me post.
  10. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I have on my invoice that "Payment is due within 10 days" or "Payment is due by Feb 10 (put a date on it). I have found that if you say "due upon reciept" that can be put on the back burner and to some customers it means "pay when you get a chance".

    I also stop services after 45 days when mowing and after 15 days when plowing. Season is to short plowing to not get paid after 45 days. That could mean 0 - 10 plowings and that is alot of money.

    On landscape projects, I get 1/2 upon contract signing and the other 1/2 at completion of the project. I leave the customers house paid in full.
  11. Skaggs Lawn Care

    Skaggs Lawn Care Junior Member
    Messages: 22

    We put "Due 10 days from date of service" on our invoices. For the most part, everyone pays within the time frame. I do have 3 I'm chasing this year, about average.
  12. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    Unfortunately, I give people as long as it takes for them to pay me. This can be up to years and years. My TERMS are net 7 days. Unfortunately, I dont control other peoples checkbooks. You can call and harass and everything else, but at the end of the day, if they dont want to send you your money, your not going to get it. I had one guy file banktruptcy on me. He still owes me $850 from 4 years ago. I might get it someday, or I might not. Nothing I could have done would have gotten me paid though. I guess thats what you get for being Mr. Nice Guy
  13. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    30 days from date billed then 15% per 15 days after for late fee. i rarely charge late fees though

    a business assiciate always yells at me for this though he says " we are in the service industry, we get paid immidiatley after job is completed".
  14. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    15% per 15 days???? Dayumm.....You should go into business for receivables....you will make far more money that way....Thats 30% per month....
  15. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I had a new customer call and want service. I sent him a contract. I plowed him several times with out gettting paid or contract. I stopped plowing him on this last storm and got a call that night saying the check and the contract is waiting for me to pick up in the a.m.

    If you don't get paid, stop working.
  16. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    i also have a termination clause if they dont pay within 60 days there gone. i want my money:)
  17. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    one week i call. two weeks i drive over there. i just do some resi though.