Question about accounts payable terms

carpetman727

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tony
More and more lately I am seeing a trend with my larger accounts, hotels, restaurant groups, large property companies, 60 days seems to be the norm getting paid, is anyone else noticing the same trend?
 

BIG WOOD

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I'd stress the importance of your business to start receiving payments every 30days. You're not a multi million $corporation. You won't get what you don't ask for.

All they can say is no
 

Onfire_02_01

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Jeremy Gray
I was seeing net 45 the last time I did the big accounts. WTF.... net 30 at the worst come on people!
That puts me a little pissy. It doesn't take 60 days to figure out if you have actually done the job and approve a check.
 
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More and more lately I am seeing a trend with my larger accounts, hotels, restaurant groups, large property companies, 60 days seems to be the norm getting paid, is anyone else noticing the same trend?
I do work for a larger resto company..... They are normally 90-120 day..... It's a catch 22.... When the cheque rolls in, I usually have forgotten about the job.... Kind of a nice day @ the mailbox..... 3-4 months later..... Can't complain, as they have me doing all their cleaning needs...... 2-3 jobs a week....
 

BIG WOOD

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I do work for a larger resto company..... They are normally 90-120 day..... It's a catch 22.... When the cheque rolls in, I usually have forgotten about the job.... Kind of a nice day @ the mailbox..... 3-4 months later..... Can't complain, as they have me doing all their cleaning needs...... 2-3 jobs a week....
I disagree. It should be way sooner
 
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Bob Pruitt

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Robert Pruitt
I would tell my very large once a year jobs that we would collect a check at the end of the job and that the Manager should have the check available once we finished. I was paid for a 45k job that way.
If a company has a problem with COD then I let them know we can do 10 days net. That gives them a week to process our invoice.
A 30 day wait would be very unusual for a cleaning job. Most companies have someone authorized to cut a check day of work performed.
If I must invoice a job and wait like the Government contracts then I would add an incentive for them to expedite payment... Save 20$ if paid by...2 weeks.also- add 20$ if past 30 days.
For me, I don't want accounts where I have to wait very long to get paid. Cash flow is too important to a small business.
 

BIG WOOD

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That's just the way they do it. It's either me getting the work, or someone else.... It pisses me off, but I've learned to accept it.....
Have you tried giving them a range of prices on your bid?
30days-$$$
60days-$$$$
90days-$$$$$

Just a thought.

When your contract is or when the 1st quarter is over, give them a line of bull saying that due to what last years reports were for your business, you have to adjust your prices if the payments go over 30 days.
 
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I've done work for them for about 8-9 months.... So, I am now recieving cheques from them every week... 1-3 cheques..... It's kind of like they are paying for last weeks jobs, but the cheques are for jobs from 12-16 weeks ago. Now that we are at this point, I really don't care anymore...... I charge them 25% more than all other accounts......
 
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I've done work for them for about 8-9 months.... So, I am now recieving cheques from them every week... 1-3 cheques..... It's kind of like they are paying for last weeks jobs, but the cheques are for jobs from 12-16 weeks ago. Now that we are at this point, I really don't care anymore...... I charge them 25% more than all other accounts......
It's also a double edged sword..... I have gained countless new clients from the RELATIONSHIP......(key word)...... I don't want to rock the boat, I am doing well with them.....
 
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