Jim@Garagecleaning
banned
We have been blessed with 20 years of working in a Parking Garage. According to some agencies who issue permits for discharge, we have achieved over 80% of the garage cleaning contracts in the east bay.
However, we have been noticing late payments. Payments that usually took 14 days to pay just 3 years ago are now 120 days in the most extreme cases. We are talking 10's of thousands of dollars.
This is resulting in loss revenue for those days. When we do a garage, our costs can be as high as $25,000. That means that 25k is loss interest and revenue for our company to use. This may slow us down in lining up garages one after another because of slow cash flow. We simply do not have 125k+ for the five garages that we can line up in a 120 days without paying some type of interest on the money borrowed to complete the jobs at hand. Paying this interest is unacceptable, however it may be the cost of doing business. Should this cost be passed onto the customer? And if so, how would you implement it?
What do you think?
However, we have been noticing late payments. Payments that usually took 14 days to pay just 3 years ago are now 120 days in the most extreme cases. We are talking 10's of thousands of dollars.
This is resulting in loss revenue for those days. When we do a garage, our costs can be as high as $25,000. That means that 25k is loss interest and revenue for our company to use. This may slow us down in lining up garages one after another because of slow cash flow. We simply do not have 125k+ for the five garages that we can line up in a 120 days without paying some type of interest on the money borrowed to complete the jobs at hand. Paying this interest is unacceptable, however it may be the cost of doing business. Should this cost be passed onto the customer? And if so, how would you implement it?
What do you think?