# Slow payers????



## GMSNOW (Aug 11, 2006)

I have 4 commercial accounts all on the same street within 2 blocks of each other. 2 of them are right next to each other. The one is a resurant that got a new manager this past summer and she is a very slow payer. I would like to keep this account but last months payment got her paid thru the lawn care service. Currently they have an outstanding balance of $2000. with $1470 being past due.

I would like to keep the account but I also have bills to pay.

What has worked for you to get accounts to pay up?

Thx
GMSNOW


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## hydro_37 (Sep 10, 2006)

Telling them you WILL plow the snow up to the door and leave it there. J/K
A reminder call sometimes works, but money is tight these days. Keep the account if they are paying even tho it is late.


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## LoneCowboy (Jan 2, 2007)

A customer that doesn't pay, is not a good customer

A very hard lesson to learn.

Imediately send them a certifieid letter stating that service is suspended until their account is brought up to date INCLUDING late fees and they must contact you immediately to make arrangements

Do NOT back down.

If they still owe you by April, you're screwed.


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## big pusher (Sep 9, 2008)

GMSNOW;743024 said:


> I have 4 commercial accounts all on the same street within 2 blocks of each other. 2 of them are right next to each other. The one is a resurant that got a new manager this past summer and she is a very slow payer. I would like to keep this account but last months payment got her paid thru the lawn care service. Currently they have an outstanding balance of $2000. with $1470 being past due.
> 
> I would like to keep the account but I also have bills to pay.
> 
> ...


Replace them. That is probably not what you want to here but what you need to hear. One thing I have learned the hard way is there is no substitute for common sense. If you continue to hold on to these type of costumers they will bring you down too.


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## Mark Witcher (Feb 21, 2004)

What do you consider late payment. I have a few big corporation accts that take 45 days to pay. No big deal. But 45 days should be plenty of time. Make them pay sooner. Tell them you will be stopping service until they are caught up. If you let them get to far behind you may find yourself with a letter of bankrupcy and you wont get anything. Its happened to me.


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## ff1221 (Feb 17, 2008)

Mark Witcher;743223 said:


> What do you consider late payment. I have a few big corporation accts that take 45 days to pay. No big deal. But 45 days should be plenty of time. Make them pay sooner. Tell them you will be stopping service until they are caught up. If you let them get to far behind you may find yourself with a letter of bankrupcy and you wont get anything. Its happened to me.


Send Gino & Vinney over to collect, ya Know what I mean.jk.
I had one customer that we suspended service, and are still chasing, and we will be going to small claims court soon, in our case it's only $400, but it's the principal of it.


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## Rc2505 (Feb 5, 2007)

If this is a chain resturant, then don't be surprised if it takes up to 60 days. I do several, they are always slow pays, and I expect that so I charge them accordingly. If your only having problems since the new manager took over, then their monthly bonus could reflect profits by a certain day of the month, so she doesn't input them untill afterwards. As long as they are paying no later than 60 days out, in this economy I don't think I would do anything other than make a few phone calls, send them a new bill with finance charges, and if all that doesn't work, send them a certified letter stating that they have 5 business days to pay, or service will be suspended, and your lawyer will get involved.


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## Brant'sLawnCare (Jun 29, 2007)

I just keep calling one of my customers. It works, so I keep him. He's my biggest and I need the money. As long as I get it, I'm fine. I would give them a call or two and see when you can expect payment. Ask if you can get settled up and tell them when the due date is. They signed a contract, right?


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## redman6565 (Jul 14, 2008)

GMSNOW;743024 said:


> I have 4 commercial accounts all on the same street within 2 blocks of each other. 2 of them are right next to each other. The one is a resurant that got a new manager this past summer and she is a very slow payer. I would like to keep this account but last months payment got her paid thru the lawn care service. Currently they have an outstanding balance of $2000. with $1470 being past due.
> 
> I would like to keep the account but I also have bills to pay.
> 
> ...


you could try finance charges so atleast you're getting some-waht compensated for carrying their a$$. but most likely either deal with it or get rid of them.


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## NICHOLS LANDSCA (Sep 15, 2007)

I have a customer that is 45 business days which is fn stupid but I charge them more than I charge anyone else. I've had them for 6yrs mowing/plowing so I have checks coming in almost every month from them. Just got mowing/fall cleanup check 3 weeks ago. There is a difference between people that don't pay and ones that don't pay in a timely fashion. I did tell a customer once that it would be a shame if I couldn't get his lot done (we were expecting 4-6") and I had time to wait for a check. It's harder for them to make up excuses when they have to lie to your face.


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## BSDeality (Dec 5, 2005)

Typically You'll get better results if you approach them in a non threatening way. Ask if they recieved the invoice, or if they had a question about it. If they received it and don't have any questions ask when you can expect payment of the bill. If that fails then its time to get a little nasty and threatening. Just yesterday I emailed half a dozen clients that owed money from landscape season and played nice on the first email, out of the 5 that responded all were very apologetic 'how could I miss this', 'thought I was paid in full', blah blah blah. Even if they're lying you've still confronted them about it in a non-threatening way and are much more likely to get paid. In this economy you need every client you have. Yes they need to be dropped or replaced if they're definitely not going to pay.


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## JDiepstra (Sep 15, 2008)

Why don't you stop in the resturaunt while they are near the end of the dinner rush and see if they can pay you out of the register.


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## redman6565 (Jul 14, 2008)

JDiepstra;744007 said:


> Why don't you stop in the resturaunt while they are near the end of the dinner rush and see if they can pay you out of the register.


doubt they'll do that


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## redman6565 (Jul 14, 2008)

looks bad for business too


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## redman6565 (Jul 14, 2008)

i love finance charges, but then again, you have to have written up that way in your contract. then hit them with the highest percetnage allowed by law


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## NICHOLS LANDSCA (Sep 15, 2007)

18.99% in MN


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## cretebaby (Aug 23, 2008)

A guy here does several restaurants and gets paid cash when he stops in after the storm....kinda a pain but he gets paid

I dont see how wether if it is chain or not makes a difference we plow several restaurants for the same corp and they pay quickly and is refining the process to include direct deposit to its online billing system which then should get us paid in under a week


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## Eronningen (Dec 20, 2008)

I always do the nice and easy remider through mail first, than a follow up, nice phone call. I will keep that up in a nice way and it has always worked out. (knock on wood)
I do have one customer that it always late though


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## redman6565 (Jul 14, 2008)

times are tough, i'm sure most, or at least more than ever, are late paying their bills. what are you going to do? personally, i'm not dropping work just because a customer pays after 45 days instead of 30


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## Bajak (Nov 12, 2008)

redman6565;744041 said:


> i'm not dropping work just because a customer pays after 45 days instead of 30


If I did that I would lose 20% of my customers and half of my income. Just because some customers are slow payers, doesn't necessarily make them bad payers. Though I do really wish they would pay in less than 30, especially when it is large coin owed.


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## redman6565 (Jul 14, 2008)

oh no doubt, don't we all? but beggers can't be choosers and it is what it is. this is the name of the game and if you can't handle slow pay then you're in the wrong line of work, as far as im concerned


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## GMSNOW (Aug 11, 2006)

Thx for all the good feedback.

GMSNOW


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## willyswagon (Dec 19, 2008)

We had a blast with a situation just like this one. A buddy of mine was owed about $1200 by a resturaunt. They were big time slow( like 90 days). So when the snow season was well over (june), he went back in and said, Where's the $$$. Owner said I'll settle up when I can afford it. 

That night about 10 of us went for supper. Guess where? We ate and drank our face off. The bill came, and my buddy calls over the manager and said "I'll settle up when I can afford it." The owner was called in and made the mistake of yelling "I'm calling the cops" in a full restuaunt. Hoping to embarress us, Good Luck!

My buddy stands up and asks the crowd if he thinks it is right that he has been waiting for snow removal payment for 90 days yet he has to pay for the food right away? The place goes nuts with laughter, and people start yelling at the owner pay the bill.

Yes I know it was Very Unprofessional. 
But it was fun, 
and yes he did get paid on the spot.payup

Four people came up to him as we left and said they liked the way he handled it, and would he do their property mantaince work.

GO FIGURE there are still some who like the no BS approach.


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## redman6565 (Jul 14, 2008)

haha that's pretty funny


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## Alpha Property (Jul 25, 2008)

lol i liked that


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## Bajak (Nov 12, 2008)

willyswagon;744603 said:


> We had a blast with a situation just like this one. A buddy of mine was owed about $1200 by a resturaunt. They were big time slow( like 90 days). So when the snow season was well over (june), he went back in and said, Where's the $$$. Owner said I'll settle up when I can afford it.
> 
> That night about 10 of us went for supper. Guess where? We ate and drank our face off. The bill came, and my buddy calls over the manager and said "I'll settle up when I can afford it." The owner was called in and made the mistake of yelling "I'm calling the cops" in a full restuaunt. Hoping to embarress us, Good Luck!
> 
> ...


I bet if your buddy gets the account next time the owner will likely be a prompt paying customer. LOL that's a good one.


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## QuadPlower (Jan 4, 2007)

Have they paid you at all? If not, then you need to stop plowing for them. Don't drop them, just stop plowing. If it is a decent place, then they make what they owe you in a single day. There is no reason to not pay.

On the other hand, if it is only 30 days out, then you need to relax a little. Commercials don't expect to pay until 30 days. 

Good Luck


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## QuadPlower (Jan 4, 2007)

I like the resturant story. When was the last time you walked out of a resturant and said, "bill me". Fast food you have to pay BEFORE you get the food.

Just go there and order $1,200 worth of food.


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## Dubliner (Aug 20, 2008)

My slowest payer is the US government. The post office always takes at least 45 days, most times more. Kinda hard to send nice e-mails and follow up phone calls. Employees could care less about your problems. But money is money, even if it's slower than we like. LOL


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## cretebaby (Aug 23, 2008)

willyswagon;744603 said:


> We had a blast with a situation just like this one. A buddy of mine was owed about $1200 by a resturaunt. They were big time slow( like 90 days). So when the snow season was well over (june), he went back in and said, Where's the $$$. Owner said I'll settle up when I can afford it.
> 
> That night about 10 of us went for supper. Guess where? We ate and drank our face off. The bill came, and my buddy calls over the manager and said "I'll settle up when I can afford it." The owner was called in and made the mistake of yelling "I'm calling the cops" in a full restuaunt. Hoping to embarress us, Good Luck!
> 
> ...


Sounds like your buddy can be as big of an ass as the owner LOL

If the owner really wanted to get stupid he could have called the cops and made you pay or they would have thrown you jail


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## JohnnyRoyale (Jun 18, 2006)

Have a Plowsite party there and tell him youll pay him in 90 days.


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## Bajak (Nov 12, 2008)

JohnnyRoyale;745102 said:


> Have a Plowsite party there and tell him youll pay him in 90 days.


After he submits his invoice.


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## te snow (Jan 16, 2009)

Love the dinner story. I myself do not hold contracts but work for someone. If this is a chain restraunt have you thought about sending the bill to corprate office for payment? This is what my boss has to do with one of his accounts. Used to take over two months for payment, now takes 30 days.


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## cretebaby (Aug 23, 2008)

te snow;745376 said:


> Love the dinner story. I myself do not hold contracts but work for someone. If this is a chain restraunt have you thought about sending the bill to corprate office for payment? This is what my boss has to do with one of his accounts. Used to take over two months for payment, now takes 30 days.


What if it is a franchise


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## redman6565 (Jul 14, 2008)

QuadPlower;745067 said:


> Have they paid you at all? If not, then you need to stop plowing for them. Don't drop them, just stop plowing. If it is a decent place, then they make what they owe you in a single day. There is no reason to not pay.
> 
> On the other hand, if it is only 30 days out, then you need to relax a little. Commercials don't expect to pay until 30 days.
> 
> Good Luck


ya but i can't afford to just drop a customer. again, i finance charge the hell out of them and might inflate their bill every now and then if they refuse to pay the finance charge, that way it makes it worth keepign the account


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## willyswagon (Dec 19, 2008)

cretebaby;745097 said:


> Sounds like your buddy can be as big of an ass as the owner LOL
> 
> If the owner really wanted to get stupid he could have called the cops and made you pay or they would have thrown you jail


Oh yes the cops could have come and made us pay, but the owner knew that the next option would have been "A Pound of Flesh" (HIS)


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## creativedesigns (Sep 24, 2007)

redman6565;744075 said:


> oh no doubt, don't we all? but beggers can't be choosers and it is what it is. this is the name of the game and if you can't handle slow pay then you're in the wrong line of work, as far as im concerned


True that! But perhaps some guys here have verrrry tight financial situations? We have clients that are huge home builders & they pay at the end of the month, always! The reason is that all businesses collect their rent or whatever towards the end of the month, cause thats when they have the cash flow! We always "Pre-Invoice" out our clients a month ahead. It works fine! So yeah, tipically you can look at it as 30 days to get paid payup


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## te snow (Jan 16, 2009)

*Franchise*



cretebaby;745395 said:


> What if it is a franchise


I don't deal with the contract end of the business, but as I have seen in other threads you may need to go to court over the situation or just wait it out. This is the best answers I have yet seen on the website other thatn getting yourself and friends a free supper. This question may be better answered by someone other than myself.


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## eshskis (Dec 1, 2008)

GMSNOW;743024 said:


> I have 4 commercial accounts all on the same street within 2 blocks of each other. 2 of them are right next to each other. The one is a resurant that got a new manager this past summer and she is a very slow payer. I would like to keep this account but last months payment got her paid thru the lawn care service. Currently they have an outstanding balance of $2000. with $1470 being past due.
> 
> I would like to keep the account but I also have bills to pay.
> 
> ...


Showing up for a check and then talking to them about it..................


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## Joesno (Dec 8, 2008)

i had this problem. they were paying me but i just got it so late. i put a "due date" on the bill and it was for two weeks. i had a forgiveness of 5 days and after that i would increase the bill by 20%. i never had another late bill again.


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## Ipushsnow (Oct 29, 2007)

Here is my most unbelievable, but true plow story. Was doing a bakery last year, weren't paying at all. So went in and spoke to the owner, gave me his "business is slow now" story and we worked out a payment schedule. No interest, no late charges, I was trying to be a nice guy. Before I walked out I said I would like like a couple a donuts since I was out plowing all night and they were smelling soooo good. Picked out two, AND THE SOB CHARGED ME FOR THEM!!


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## redman6565 (Jul 14, 2008)

haha damn doughnut making thieves!


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## cod8825 (Feb 8, 2007)

There are a couple of things here that runs true for all posters.

1) Everybody has a different way of doing things and you must find the approach that is most suitable for you. I am not a confrontational guy. I hate it I loathe it. Even with that in mind I do residential lawn apps and commercial snow removal. I give people grace up to sixty days and then it is on. Suspended services, late fees and aggressive collections from our lawyer. 
2) You constantly have to evaluate clients. Don't expect to float somebody forever. I worked for another LCO in 2008 doing his residential lawn apps. From March to September he paid thirty days out and I was very happy. Then for the rounds in August(spot spray) he took all the way to November to finish paying. He still owes me for $2242 for work done in September. 1) When I had not gotten payed in October for August work I called and informed him I would not do the work. Even if he pays me and I get a check in the mail tomorrow I will not do work for him this year because I refuse to work with late payers. 

Find a way to replace them. All of us most operate the business in the fashion that works for us. 

Matt


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## QuadPlower (Jan 4, 2007)

cod8825, that is FIVE (5) months without being paid $2,242!! There is no way I (or most of the people on PS) could go 5 months without being paid that kind of money. You need to get your "aggressive collections from our lawyer" a$$ in gear. Non-confrontational guy or not, you and your family could use that money I'm sure.

If everybody just paid everybody, there wouldn't be a recession.


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## redman6565 (Jul 14, 2008)

QuadPlower;747874 said:


> cod8825, that is FIVE (5) months without being paid $2,242!! There is no way I (or most of the people on PS) could go 5 months without being paid that kind of money. You need to get your "aggressive collections from our lawyer" a$$ in gear. Non-confrontational guy or not, you and your family could use that money I'm sure.
> 
> If everybody just paid everybody, there wouldn't be a recession.


run for president haha


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## QuadPlower (Jan 4, 2007)

My slow paying customer finally paid. I got 3 checks, from three different accounts all in one envelope that totaled $200.

If it snows again, I guess I will start plowing them again.


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## redman6565 (Jul 14, 2008)

that's all you can do...unless you have other income


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