From now on, This is how I will get paid...

Luis Orts

New member
Just to keep you guys in the know... I've been stiffed for roughly almost 3k this year.

That's a bummer I know...

What I realize is I've been WAY TOO LEINIENT in how I take payments... I was accepting payment however I could, and I haven't been pushing an exact criteria on how I get paid.

So what I'm going to do from now on is before the call is over and they accept my bid/price point, I will ask them for their Credit Card information and I will process the payment upon a follow up call for Satisfaction.

(or if they'll be home I'll just have them give my guys a check)

What are your thoughts?
 
That's similar to what we do. For corporate and franchise stores net 30, everybody else is cash / check/ credit card on completion. We ask before service how they will be paying. If there are any issues there service doesn't get started and the customer gets billed our service fee. Some local business however, do get net 30 but they have to complete a credit check first and never a new customer without any history with us.
 
Payment upon completion! If your not going to be home, check needs to be under the mat before we start.


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Oh, and I should mention we have a letter that goes out at day 20 on net 30 accounts reminding them of terms and any payment not received within 30 days will result in open account privileges being suspended. Seems to work to get 99.9% of checks in on time.
 
Well you see... For the pay upon completion... Residential clients don't leave the checks and I've been hunting this one guy down for 3 months... I'll just send his ass to collections lol

And then net 30... I've had people pay me net 60, and it kills me.

What do you guys do to combat that?
 
I don't agree yo net 60. Always get a large deposit before starting. 30 to 50 percent. Never been stiffed. I always tell residential "I know where you live "
 
Jim if you havent been stiffed you havent been doing business long enough lol.It happens the key is trying to avoid it as much as possible.
 
15 years.

Jim Twist Oliver Twist Pressure Cleaning West Palm Beach Florida 561 248-1053
 
On larger projects, I make it a point to get a deposit... Never 50 percent though. And typically, they don't have a problem paying me.

It's the smaller jobs that have stiffed me.

5k+ jobs, I've never been stiffed or had issues with late payments.

It's the 800 here... 600 there... that adds up, you know?
 
Even better than collections, put a lien on the property. If you send to collections it can be expensive and you may never see the money anyways. With a lien he'll never be able to sell or hand off the property without you getting your money.

I guess net 60 really depends how bad you want the job. Net 30 is pretty much it for me except maybe a rare exception. All payment arrangements are worked out and agreed upon before any trucks leave the lot. If a client is pressing for longer terms I will offer them a discount if they pay before day 20 on a net 30 and the chance to save money will persuade them enough to come to my terms. To me anything over net 30 is a huge pain with my cash flow and if they pay late it can be almost 3 months to see a check and that is unacceptable.
 
ive never been stiffed either

I will get paid

some have tried-but i always get paid

Lol...

Residential is payment upon completion with the exception of repeats. Only way we do business. Most folks are usually home anyway or will give CC info. Most of our commercial accounts pay within a couple of weeks. Apartment complexes are all net 30.
I have offered other commercial jobs that were net 30 a 5% discount to pay upon completion. Some do it and some can't because they can't get it pushed through.
 
You have to manage your cash position on a daily basis.

If you can't collect. You can always send a certified demand letter, including the date by with you expect to be payed or you will file a Form 1099-C with the IRS. They can take up the Debt with them when they file their taxes.

Usually, unless the person has no money, you will here from your debtor.
 
Hmmm.. I've had problems with the residential before because honestly, there hadn't been a system in place for collecting money.

I've recently been offering 5% within 10 days, but no one budges.. Damn corporate!!

It's really residential though
 
I have always gotten paid. But then again it sometimes seems like i am living in the twilight zone where everyone is friendly and pays their local contractor.
 
Mike, no lol. That's what I offer commercial clients on net 30.

I'm just saying, when people do cash or check, it's not always readily available for my crew or to me. And literally, people will ignore me just so they don't pay. It's happened in 3 cases. They said cash or check... and royally screwed me and I've never heard from them since.

I'll just start collecting cc info before hand!
 
Commercial all depends on the type of work and the company.

When I do the odd town house complex, surface cleaning, or anything related to retail payment is typically quick.

When I deal with large companies on massive construction projects many of there terms is 90 days, you learn to live with it. I had a massive job earlier this year in which I was out $80k from one company and being a one man show that really hurts. I paid the subs, fuel, supplies, and maintenance from other work, but waiting for that money was not easy.

Heavy equipment is the same way, 60-90 days is normal, although I do have a few that are less then 30. I don't recommend it, and push for CC if I hear 90 days now, but I can't always win and just make sure I have a wide range of customers so money is always coming in.
 
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