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How much time for invoice billing?

Discussion in 'Business Fundamentals' started by ss502gmc, Nov 11, 2010.

  1. ss502gmc

    ss502gmc Senior Member
    Messages: 473

    Im wondering how many days do you give commercial accounts to pay there bill. I have always given customers 14 days to pay there bill from the time they recieve there invoice. Im curious to know how others do it as i never seem to get paid on time by 50% of my customers.
  2. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    we always allow 30 days
  3. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    All comercial accounts get 30 days, most pay in 30 to 45, some seem to think I am a bank and wait 60.
  4. ss502gmc

    ss502gmc Senior Member
    Messages: 473

    30 days seems fair which is why i always put 14 days on the invoice because typically id be waiting 30 anyway. Like you said we are not a bank and well it costs me $$ everytime i start the truck so waiting more than 30 days isnt much of an option for me.
  5. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,247

    Mine is 14 days and most pay within that. I have a few larger ones that dictate when they pay. One is 30 days and another is 45 days.
  6. cf1128

    cf1128 Member
    from NH
    Messages: 77

    I speak to them before the contract is signed. I bill within 48 hours, and expect payment within 14 days.
    I too have some large accounts that dictate when they pay, however that is agreed upon upfront.
    I have a 4 accounts that demand a bill within 24 hours and pay within 48 because they want no "mystery bills" showing up two weeks after an event. Those are my best accounts, they never complain or question an invoice. I have tried to implement that with every account, and have found most appreciate it, and never fall too far behind that way. Of course Wal Mart etc... make you wait, but that is a whole different story
  7. Clapper&Company

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

    I bill all clients after each event

    All inovices are"Due on Rec"

    Turn-around is anywhere from 15-60 days depending on account.
  8. mansf123

    mansf123 Senior Member
    from mass
    Messages: 817

    It never seems to matter when its supposed to be paid. People seem to make up there own timeframe. I would love to see how people who work there 9 to 5 office jobs would like it if there boss payed them when he felt like it.
  9. bossplowguy

    bossplowguy Senior Member
    Messages: 214

    I bill twice a month. 15th and the 30th. I have 10 days on the terms, most pay within that
  10. snowplowchick

    snowplowchick Senior Member
    Messages: 549

    I have never heard of a commercial account paying before 30 days unless a discount is given for prompt payment.

    Municipal contract we have always pays within 10 days for a 4% discount. But all others are 30, 60 and beyond.

    I am assuming the fast turnaround like 10-15 days must be residential.

    I think most people think in terms of paying at 30 days. I don't know how you would enforce payment in 15 days or less, I think it would irk me to get phoned over a bill on the 16th day.
  11. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    Most of our contracts pay in 30, other 45, a couple 60s. So most commercials go...........

    Before Lowes got sucked up by the national S**M B**S, they paid SUPER FAST, Pcard with 2-3 days of invoice, very nice to have.
  12. Creagers Lawns

    Creagers Lawns Junior Member
    from 84020
    Messages: 27

    DUE UPON RECIEPT I'm not a financial and loan company I bill monthly and I expect to be paid when they recieve their bill. My customers are real good at paying I never got into the habit of letting them dictate when they want to pay me.I provide good service, i'm on time and if they want service they will pay in a timely matter or get a shovel and do it themselves
  13. Tubby's Snow Plowing

    Tubby's Snow Plowing Senior Member
    Messages: 199

    I would never bill 30 days for commercial accounts. That's a lot of snow plowing and not getting paid. Two weeks is even pushing it. There is no excuse for businesses not paying within 5 business days after service is performed. They have people on staff that write checks. If it goes one week unpaid after due date, I'd stop plowing until they pay. 30 days gets into certified mail status. Bottom line, pay your damn bill.

    Bill accurately.
    Get paid on time.
    Pay your bills early to get the discounts.
  14. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    They may have people on staff to write checks ,but if there policy is to send it out in 30-45 days nothing you can do other then not plow or drop them.
  15. kashman

    kashman PlowSite.com Addict
    Messages: 1,070

    same way i do it
  16. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Due upon receipt. My alarm company has that, and it goes right to the bottom of the pile.
  17. kashman

    kashman PlowSite.com Addict
    Messages: 1,070

    all bills go 2 the bottom
  18. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    I am going to add due date for residentials. Most are pretty good but its due at time of service, just nice enough to give them a few days so I can calculate the tax (landscaping work).
    Commercials-they're probably used to net 30. They can pay at time of service. I would add charges for more time, jeez 45 days of plowing and no income-cash flow needs bigger buffer.
  19. DodgeBlizzard

    DodgeBlizzard Senior Member
    Messages: 526

    I would like to know why the norm in this industry is to wait so long to get paid. When I pay for fuel, it's right away. When my guys work, they want paid quickly. When I need repairs on trucks, they get paid before I get my vehicle. When I need salt, they get their money too. Why should we wait 30, 45, 60 days to get paid? I just don't understand that mentallity. With this Winter, it's snowing A LOT. Why should we sit on money owed to us? My invoices state late fees after 15 days. Service stops after 30 days of non payment from invoice date. I don't wait 15 days to remove the snow. Why should I wait so long to get paid? I look at it like this. I'm simply an employee just like every other person working in that commercial building. They get paid every week or two weeks. If they can cut them a check, why am I to wait 30 to 45 days? :gunsfiring: Think about it. But no matter how you cut it, you get paid when they feel like it. Times are tough.
  20. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    I guess this is one time I would recommend explaining to the customer the Plowing business.
    I would not wait that long. I would definitly have a retainer payed at the begining of the season, a minimum amount that I get even if no snow flies. They draw from this through the season. That way you just wait toward end of season. If its bad season then a mid-season retainer that can be refunded if no snow.