# Customers who pay, but pay late.



## CashinH&P (Jan 14, 2012)

Recently I have my business has about doubled. With all the new work my girl friend is now a full time office manager. I always would bill when I had some time and my cash flow was awful. We are now billing biweekly and for the most part our customers have been awesome with the change. I have a few customers who, in the summer will bring a check out to me when I am mowing. Last winter he would do the same and if I plowed and he wasn't home I would send a bill. It always takes him for ever to pay but he does pay. Now he has an out standing balance from 1/9-2/2 of $105. Now he is a great customer and has us do everything, mow,mulch,clean ups, and plowing. Invoices are net-15 and I am sick of waiting for my money. If he wasn't a good customer I would drop his a$$, I am not in the position to loose work but this is starting make me mad. what would you guys do?


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## seville009 (Sep 9, 2002)

If it's net 15 days, it's only been six days since 2/2. In the end, if he's a good customer and eventually pays, I wouldn't worry about it.


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## CashinH&P (Jan 14, 2012)

Yes it is only 6 days from 2/2 but from 1/9 its over 30 days and thats what bugs me. I know its not much money but I hate working for free...


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## edgeair (Sep 26, 2010)

Many people follow a monthly billing system better than a biweekly one so that may be part of it, but if you are Net 15 he still has time to pay if the billing was for up to 2/2. If he is a good customer, then you have to be a bit flexible.

When I first read your title, I though maybe this forum was about someone who is months behind, not days. Many of us have that problem, so I wouldn't be too upset over a hundred bucks thats not due yet.


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## edgeair (Sep 26, 2010)

CashinH&P;1951790 said:


> Yes it is only 6 days from 2/2 but from 1/9 its over 30 days and thats what bugs me. I know its not much money but I hate working for free...


Thats how a Net 15 system works. It starts the day you invoice. Its not his problem that you invoice that way. If you want/expect to be paid at time of service, you would be outside the norm in this business.


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## gc3 (Dec 6, 2007)

If it bothers you that bad then go knock on his door the next time your there during the day


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## snowplower1 (Jan 15, 2014)

Put it in your contract that late pants are subject to 15% of Bill.


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## grandview (Oct 9, 2005)

If your conceded just trow another bill in the mail,Not that big of a deal,


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## JD Dave (Mar 20, 2007)

If he always pays and.is a good customer I'd focus my energy into something else other then him being a slow payer.


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## grandview (Oct 9, 2005)

grandview;1951953 said:


> If your conceded just trow another bill in the mail,Not that big of a deal,


What the hell.

If your concerned just throw a new bill in the mail.


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## chevy2500meyer (Jan 30, 2011)

i had a customer like this who would always wanna pay me with a late check, what i mean is post dating it and the last one was for 3 weeks out. I got tired of him complaining about his yard that i was doing bad service (not cutting it short missing spots in the yard) while he would want it done every once every 3-4 weeks and bagged it. I dropped him and had another company take him on and i warned them about what he does (big local company). They called me about him not paying them, i said im sorry but he does pay but idk how long it will take. So like you CashinH&P, i wasnt gonna work for free so i dropped him.


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## maxwellp (Feb 16, 2013)

You say you are net 15. He has until the 17th before he is late. I see no problem. The bill was sent on the 2nd so the 1-9 date means nothing. I put Due On Receipt on all my bills and people just do whatever suits them. Can't control them. All I care is that they pay. I have one that is a big residential driveway that takes forever to pay. Last year they paid for March in July. But they alway pay up. Driveway is 75$ for .5-3 inches so there bill adds up in quick. Not going to give that up just because they are slow. If $105 is going to drive you crazy - you may want to think about a new Job.


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## Antlerart06 (Feb 28, 2011)

CashinH&P;1951779 said:


> Recently I have my business has about doubled. With all the new work my girl friend is now a full time office manager. I always would bill when I had some time and my cash flow was awful. We are now billing biweekly and for the most part our customers have been awesome with the change. I have a few customers who, in the summer will bring a check out to me when I am mowing. Last winter he would do the same and if I plowed and he wasn't home I would send a bill. It always takes him for ever to pay but he does pay. Now he has an out standing balance from 1/9-2/2 of $105. Now he is a great customer and has us do everything, mow,mulch,clean ups, and plowing. Invoices are net-15 and I am sick of waiting for my money. If he wasn't a good customer I would drop his a$$, I am not in the position to loose work but this is starting make me mad. what would you guys do?


O my you cant live with out that $105

Biweekly billing that sounds like a lot paper work and waste of money in office supplies

If you cant live with out it. Then go talk to him in person. 
Or add late fee and let it ride longer he is late more money you going make.

I have one and they are my best customer always something to do there. 
They have a 60-90 day turn a round on checks. 
Like Jan 31 I deposit Oct check Sure they running a balance of 6k now higher in summer time.
Yes it sucks but it was agreed during contract signing and was a requirement.


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## peteo1 (Jul 4, 2011)

I thought good customers paid their bills on time?


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## got-h2o (Sep 26, 2008)

No offense, but I'm small time and over here waiting on tens of thousands from accounts that pay net 45-60. It doesn't matter what my terms are, that's their terms. Even the net 30 day accounts are usually close to 45 or more by the time it goes through the coorporate channels. I haven't collected a single payment yet this season. But I get paid eventually so I deal with it. 

Its $105. You can legally collect 2.5% per month. But is it really worth it?


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## got-h2o (Sep 26, 2008)

peteo1;1952567 said:


> I thought good customers paid their bills on time?


Nope . Good customers pay you what you're worth.


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## peteo1 (Jul 4, 2011)

got-h2o;1952663 said:


> Nope . Good customers pay you what you're worth.


Fair enough :salute:


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## Mark Oomkes (Dec 10, 2000)

CashinH&P;1951790 said:


> Yes it is only 6 days from 2/2 but from 1/9 its over 30 days and thats what bugs me. I know its not much money but I hate working for free...





maxwellp;1952356 said:


> Y*ou say you are net 15. He has until the 17th before he is late. I see no problem. The bill was sent on the 2nd so the 1-9 date means nothing.* I put Due On Receipt on all my bills and people just do whatever suits them. Can't control them. All I care is that they pay. I have one that is a big residential driveway that takes forever to pay. Last year they paid for March in July. But they alway pay up. Driveway is 75$ for .5-3 inches so there bill adds up in quick. Not going to give that up just because they are slow. If $105 is going to drive you crazy - you may want to think about a new Job.


Whew, someone who understands it.

Cashinwhatever, you don't get what Net 15 means. Net 15 means 15 days from the invoice date. Not from the first date of service. If you want him to pay in 15 days from January 9, you should have invoiced him on Jan 9.

Please learn what you are asking before going on a rant about something you don't understand.

Secondly, you say he is a great customer and always pays and you do a lot of work for him PLUS you can't afford to lose (not loose) customers. Why would you get this PO'ed about a great customer not paying in the time frame you both agreed to? Especially over $105?

What is the cost to replace this account? More than $105. I guarantee that. And it will keep happening because you don't understand what Net 15 means.

If you don't want to work for free, as you state, then you better have everyone pay a retainer and work off that. Because in reality, unless you are prepaid, you are working for free the second you leave that account.


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## John_DeereGreen (Jan 2, 2011)

All this over $105 bucks, that isn't late for over another week?

I have more than a couple clients that have 2 more zeros before the decimal point than your number hanging out there in A/R. Invoice date was Jan 1 and I still don't have money. Takes money to make money. If you can't afford to front it and go without it, you're in the wrong damn business.

Like it or not, Net 45 is pretty typical. Especially on the commercial side. So if you see it faster than 30 days you should be jumping for joy.

And on a side note, why da fawk are you billing biweekly? Grown so much your girlfriend is your full time office manager? We didn't even think about an office manager until we were 7 figures.


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## Pa Teeny (Sep 15, 2006)

I tried that and the people only tried to pay the lower bill if as the beginning of the month snowed heavy and sent bill out and then end of the month sent bill out and people paid the lower bill!! No way It was a headache....I just send out once a month....Good luck I know it sucks to wait on money...but raise your rates and find new customers....who pay....


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## Mark Oomkes (Dec 10, 2000)

Pa Teeny;1952940 said:


> but raise your rates and find new customers....who pay....


The customer does pay, just not when the OP thinks he should be paying, because the OP doesn't understand payment terms.


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## BC Handyman (Dec 15, 2010)

lol I wish I only had to wait 1-2 weeks for payment, I usualy got over 20g's I'm waiting to collect on 30-60days
gotta love commercial!


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## gc3 (Dec 6, 2007)

It's just another bill to these people and they probably treat it like a credit card bill. No less than 30 days and definitely don't pay it when it shows up in the mail.


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## got-h2o (Sep 26, 2008)

I don't see a problem with billing biweekly. I started that last season just to get the ball in motion on some of the slower paying accounts, especially when it was larger #s out for the month. You wait the std 45-60 days for the first payment, but then a check is in the mail every couple of weeks from then on out. This season I actually had my larger account request to be invoiced as often as possible, just so it wasn't such a shock to the accts payable department at the end of the month. Not to mention that after a certain amount, certain approvals are needed before they can issue a check in certain instances anyway. So with biweekly billing, everyone wins. 

I have a friend in the business that bills out every event, others that are 30 days. I have had small accounts in the past for minimal $ that I never bothered billing till the end of the season.


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## Antlerart06 (Feb 28, 2011)

got-h2o;1953144 said:


> I don't see a problem with billing biweekly. I started that last season just to get the ball in motion on some of the slower paying accounts, especially when it was larger #s out for the month. You wait the std 45-60 days for the first payment, but then a check is in the mail every couple of weeks from then on out. This season I actually had my larger account request to be invoiced as often as possible, just so it wasn't such a shock to the accts payable department at the end of the month. Not to mention that after a certain amount, certain approvals are needed before they can issue a check in certain instances anyway. So with biweekly billing, everyone wins.
> 
> I have a friend in the business that bills out every event, others that are 30 days. I have had small accounts in the past for minimal $ that I never bothered billing till the end of the season.


I know one company will go collect the day after but they run on very tight budget to many play toys
There is another company does the same bill each event and they are a big company Bigger then me


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## Grantski (Jan 26, 2015)

Your almost creating more headache billing bi weekly - more paper work - more checks and bills : You said its a regular customer but im pretty sure they wont be for long if you hit them w late charges. For MOWING I bill monthly...Ill show up 1 more time and if I havent received payment ill show up a 2nd time and leave another copy of the bill including the additional 2 more mowings. Then discontinue service untill I get payment. With plowing its a little different I understand billing every 2 plowings... Id prob show up for 1 more service - leave a new bill...if u dont get paid then discontinue service and you will almost def recieve a phone call. But If its a customer you cant trust to pay up drop them. 10 yrs in business 40-50 customers...ive only not been paid ONCE.


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## Grantski (Jan 26, 2015)

I only have 15 plow accounts...all pay no issues...one lady hasnt paid yet for 2 plowings...AND shes a ***** any time I talk to her....if I dont get a check before the next storm ill just drop her its not even worth the stress or attitude.


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## Plowtoy (Dec 15, 2001)

Do whatever your contract states you will do. If it is Net 15 (then it is after the invoice is sent, not day it was serviced, unless you spelled it out otherwise) and you dont recieve payment, follow through. 
I am net 15 with a 10 day grace period before late fees are applied. After 30 days I can discontinue service. I have not once had to apply late fees or discontinue service. I have had a few close calls, but 25 days is 25 days. Most importantly, be consistant on your billing. I do monthly. For me, bills are in the mail the first Saturday of the month. I ususally start seeing checks by the end of the following week.


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## got-h2o (Sep 26, 2008)

Plowtoy;1954054 said:


> Do whatever your contract states you will do. If it is Net 15 (then it is after the invoice is sent, not day it was serviced, unless you spelled it out otherwise) and you dont recieve payment, follow through.
> I am net 15 with a 10 day grace period before late fees are applied. After 30 days I can discontinue service. I have not once had to apply late fees or discontinue service. I have had a few close calls, but 25 days is 25 days. Most importantly, be consistant on your billing. I do monthly. For me, bills are in the mail the first Saturday of the month. I ususally start seeing checks by the end of the following week.


but regardless of what your contract states it's still only legal to collect a maximum of one and a half percent per month equaling 18 percent per year. he will be able to tack on that extra dollar here in no time


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## hatchmastr (Oct 28, 2011)

CashinH&P;1951779 said:


> Recently I have my business has about doubled. With all the new work my girl friend is now a full time office manager. I always would bill when I had some time and my cash flow was awful. We are now billing biweekly and for the most part our customers have been awesome with the change. I have a few customers who, in the summer will bring a check out to me when I am mowing. Last winter he would do the same and if I plowed and he wasn't home I would send a bill. It always takes him for ever to pay but he does pay. Now he has an out standing balance from 1/9-2/2 of $105. Now he is a great customer and has us do everything, mow,mulch,clean ups, and plowing. Invoices are net-15 and I am sick of waiting for my money. If he wasn't a good customer I would drop his a$$, I am not in the position to loose work but this is starting make me mad. what would you guys do?


if 105 dollars is your most dilequent customer you are in good shape my friend
let his balance acculimate and collect in full in spring lol


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## usmcdroach (Dec 29, 2014)

Wish my biggest worry was $105. convert your billing to once a month i think everyone can agree you will have much less of a headache and spend less time staring at a computer screen. On a side note I have a customer that pays for mowing twice a year about half way into the season and sometime after the season. at first I went knocking on his door for payment he paid no problem and would pay anytime if i went knocking. I dont have the time to go looking for payment and i look at it as a little nest egg. I just got his payment for second half of mowing last year $675 if it makes you upset go collect personally I dont mind but I also have no doubt I will get my money


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## JBMohler (Dec 17, 2013)

I invoice all my driveways through paypal. Sure I pay a fee but pretty much all my accounts pay within a week of invoicing. Everyone loves it. Pay on their phone watching tv. win win.


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## Mfredland (Feb 7, 2015)

*Slow payers....*

A very successful older contractor had a line on the bottom of his invoice which stated....." Prompt payment assures prompt service "

I never copied the line, however I always wanted to.


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## Meezer (Apr 3, 2010)

Mfredland;1959463 said:


> A very successful older contractor had a line on the bottom of his invoice which stated....." Prompt payment assures prompt service "


definitely words of wisdom....Thumbs Up


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## grandview (Oct 9, 2005)

Mfredland;1959463 said:


> A very successful older contractor had a line on the bottom of his invoice which stated....." Prompt payment assures prompt service "
> 
> I never copied the line, however I always wanted to.


And pre pays go last.


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## M&M (Sep 8, 2008)

got-h2o;1952662 said:


> No offense, but I'm small time and over here waiting on tens of thousands from accounts that pay net 45-60. It doesn't matter what my terms are, that's their terms. Even the net 30 day accounts are usually close to 45 or more by the time it goes through the coorporate channels. I haven't collected a single payment yet this season. But I get paid eventually so I deal with it.
> 
> Its $105. You can legally collect 2.5% per month. But is it really worth it?


I could be mistaken but I think in New Hampshire the max that you can collect on late fees is 2% per month. I add it to every invoice that has a balance and people pay it maybe 25% of the time.

What it does is let them know that you are a legit company that knows your rights and is not screwing around.


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## ryde307 (Dec 3, 2009)

We invoice snow after every event. We only do commercial so 30-60 days is typical payment. About 25% pay right away.
We have some customers from summer that constantly pay months behind. We know the few that do and they are good customers. We will always get paid and just know that it will come. These ones we have services for years and it is a normal pattern. If we have a newer account that starts to be out 60 days we send an email or a phone call. If we don't get money we stop service.


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