Question about accounts payable terms

[carpetman727]

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?

 

[Mikey P]

yep, but our new military account surprised me with a sub 30 day pay off

 

[BIG WOOD]

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]

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.

 

[Sierra Clean Care]

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]

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

 

[Bob 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.

 

[Sierra Clean Care]

I disagree. It should be way sooner

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.....

 

[Lee Stockwell]

Why I started doing cards.

 

[BIG WOOD]

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.

 

[hogjowl]

If they're larger than Piggly Wiggly, they pay late.
Get over it.

 

[Desk Jockey]

We are doing Air Duct cleaning for a major corporation all this week. They sent the contract over last week it said 90 days.

$12,500.00, we will bite the bullet.

 

[hogjowl]

Braggart

 

[Sierra Clean Care]

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......

 

[Desk Jockey]

Braggart

Richard. Braggart is my cousin.

Who brags about being drawn out for 90 days? I'm just lettin ya know major corporations plan on extending you...bitch!

 

[Sierra Clean Care]

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.....

 

[hogjowl]

Richard. Braggart is my cousin.

Who brags about being drawn out for 90 days? I'm just lettin ya know major corporations plan on extending you...bitch!

Are you sensitive tonight!

 

[Desk Jockey]

I'm ways sensitive but sorry you're not my type.

 

[BIG WOOD]

If they're larger than Piggly Wiggly, they pay late.
Get over it.

I'm ways sensitive but sorry you're not my type.

Are you sensitive because Marty's Piggly Wiggly is larger than yours?

 

[Desk Jockey]

Are you sensitive because Marty's Piggly Wiggly is larger than yours?

Well lets see...yeah that's it. He's entirely a dick and I don't compare to that.

 

[hogjowl]

Oh, now you've got Nate jealous

 

[Old Coastie]

Are you sensitive because Marty's Piggly Wiggly is larger than yours?

...annnnnnnnd Matt wins the internet.

 

[Nate The Great]