Net Payments getting out of hand?

Jonathan Ellis

Jonathan Ellis

moderator
Just wondering how many companies are being hurt by doing the work and then having to wait weeks... or even months to get their money. What is your typical net payment amount of time?


Double Guarantee Pressure Washing
Jonathan S. Ellis
823 Walden Run Place
McDonough, GA 30253
678-522-3182
doubleguaranteepw@yahoo.com
 
We have 1 account that is consistantly 1 month behind.I fax them a past due notice in the middle of the month with "past due"in a huge font.Matter of fact I did this today.1 invoice for the month coming up(yes,they get 15 days advance notice that the bills is due),1 for the payment that is currently due,and 1 for the month that is 30 days past due.(this and the second are the ones that I sent today with a huge font on the past due and currently due ).
This is becoming a common trend with alot of businesses now days.
I wonder if they will let me eat and pay them for the meal in a few months.I hate to force commercial accounts to pay C.O.D. but if I can't get them to pay within the 30 days I will be forced to.
 
Give me all the MOM and POP joints in the world to clean and I will do them first.. We have a few corp accounts such as Darden , Walgreens , Potters , Enviro Management and they all pay good.. Live and Learn is what I always do.. Being in the Hood Cleaning, Fire Equipment and concrete cleaning Business for many many years I have learned who pays and who doesn't . The ones that pay late do not get the job done again.. I drop them like a bad habit... The funny thing about our business is we are a service company.. Many of the service companies around here in mississippi demand COD.. But from some odd reason they all want to wait on paying us our little $200 and $ 400 charges... If you ask me this sux..
Fire Equipment is the worst.
I have a stack of past due bills some for as little as $ 25.00 LOL
What has worked good for us is contracts.. We add a $ 15.00 Late fee on accounts over 30 days.. We also give a 5% discount for paying COD if the amount is over $100.00, this is all listed on our contract..

Just a note , There was a company in Jackson ayear or so ago that had all fire equipment tied up with contracts.. Everywhere you would go seeking business you would get the same thing ( We have a Contract) So I got Pissed.. I called the state department and talked with the commisioner,, This is what was said.. If you type up a contract and it is signed only by you and the company your doing business for the contract is not worth the paper it's printed on.. He went on to say there should be a witness , the contract should be notarized...
I have a copy of a letter sent to me by the state fire marshal's office that states this same thing.. I carried it with me to some accounts and guess what .. I do alot of fireequipment accounts now.. and yes I get alot of mean phone calls...
I even had one guy tell me I didnt know what I was doing... Lets see he has been in business 3 years I have been in this business going on 15 years..
Anyway if you do some work for someone and they don't pay ( Drop there ass)
Eventually they will turn out to have no one left to clean up there mess.. And if they ever call you back.. Say NO THANKS.. I had a guy that always paid late .. I told him COD and guess what when I got thru Cleaning he had left his checkbook at home...
" My words. Sure Buddy , Don't ever call me again ""
That guy owes me over $ 400.00 dollars..
I am losing $ 50.00 bucks on the job so Forget him..
REMEMBER IT"S ALL BUSINESS , IT'S NEVER PERSONAL
 
I used to work for a company that stamped every invoice (in blue) with "Please pay us , so we can pay him, then he can pay them and they can pay you".

Pat due statements were stamped (in red) with a big "Past Due" and the previous statement again, this time in red.

I couldn't tell you if it worked, but I'm sure it caused the invoice and statements to get a second glance.
 
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