Good policy or bad?

[daniel@procarpet]

I am no longer going to bill for carpet cleaning. I want to get paid at the time of service. If that is not possible then NET 7 days. If I can't get those terms, then I don't want the work.

I have one account that is supposed to pay in 45 days. I just checked and saw the invoice was 30 days past due for 670 dollars.

 

[Desk Jockey]

I can see that with new clients but what about your regular accounts?

 

[Chris A]

You can try it, our experience has been that the client will go "yeah sure you betcha" and keep paying you the same as always. Slow payers will always be slow payers...

 

[Royal Man]

I can see for resi. But, how can commercial pay at time of service?

I do get some commercial to pay at time of service by paying with credit card on file.

 

[keithk]

bad policy for commercial, good for residential. Some commercial accounts send payment to corporate office, corporate then processes it then it goes to A/P. A/P then cuts checks once a week or so. As long as you have a good policy in place, contact info of who is actually paying you and no longer then 45 days.
Good luck getting a new commercial account and telling them you need paid right then. Most don't have that ability. You will be limiting your self. At 30 days call payroll and ask where your money is at. Some you will have to stay on top of.

 

[sam miller]

I have one property manager I do and they pay monthly 30 day net usually 2 to 3 jobs a month 3 to 5 hundy at the most.

All else is residential and I get paid on the spot. !dork!

 

[Dolly Llama]

I am no longer going to bill for carpet cleaning. I want to get paid at the time of service. If that is not possible then NET 7 days. If I can't get those terms, then I don't want the work.

.

as they say, Dan'l

"it's your rail road, you get to run it any way you want"

but personally, i think it's a dumb decision unless you want to be 97% res ONLY


..l.T.A.

 

[Shane Deubell]

Bad policy, govt or jobs with mid-large corporations are the premium jobs in commercial work. They cannot turn around an invoice that quick, too many people have to sign off on it. We send them out saying 7 days but really is a 30.

 

[lust1kiddo]

I have commercials that take months to pay..but they do. Residential have to pay on the spot unless they want a bucket of dirty water on their sofa..lol. Sometimes depending on who it is, I let them mail me a check a week later..but that is very very very few and far between.

 

[Mikey P]

So did your mom ever get back to you with that number?

 

[Connor]

IMHO, Residential should always be COD.


After you book the appointments, you politely inform the customer that payment is due when service is rendered, ask them "will YOU be paying will be cash, check or credit card?" If it's an absent owner, ask them "would you like to pay over the phone with a Visa or MC?" (or whatever other cards you accept).

When you get to the job, give them a cost, in writing, have them sign for the work and have another spot on the invoice that again clearly states the price for that job and have it read DUE UPON COMPLETION beside this amount.

Have them sign and or initial the invoice there also. That way the job amount is written in TWO spots and they have signed it in TWO spots.

For those commercial that you just have to bill out, offer a 2/10 net 30 discount.