what percentage of your gross sits in recievables?

[juniorc82]

I am growing tired of hunting my money down and babysitting some commercial and realestate customrers for payment. Just curious want amount of invoice work everone else does. I think one of the main reasons I havent switched to commercial , and rental only is that residential keeps some cash flow coming in when all my commercial money is tied up in recievables. I would say close to 70% of all my work gets invoiced . I am thinking of offering 2 prices, one for payment upon completion and another price for 30 day invoicing. I have a couple commercial projects with high overhead coming up and I really hate having my money tied up .

 

[Becker]

I don't think it has ever been higher than 5%.

Currently less than 1%

But I do like 98% res work..

I sometimes have more in processing via direct payments, scanned checks and waiting for merchant deposits than receivables. ( like now )

 

[Shane Deubell]

The trick is mixing up the kind of customers a little more, alot of companies will pay right away 7 days. We usually make it 15 and see what happens.
Alot of it comes from targeting specific industries, we offer our service to any business. Does not matter to me, medical is probably worse.

 

[Lee Stockwell]

Re: what percentage of your gross sits in receivables?

I usually have two weeks production in the "pipeline". I just consider it a "shock absorber" because 99+% of it eventually comes in.

However it hurts when the "pipeline" gets backed up at the wrong time.

 

[juniorc82]

Re: what percentage of your gross sits in receivables?

I usually have two weeks production in the "pipeline". I just consider it a "shock absorber" because 99+% of it eventually comes in.

However it hurts when the "pipeline" gets backed up at the wrong time.

I sure does hurt. I have a large plant that I clean twice a year. Costs me over a grand in temp help and chemicals. That company happens to be a serial late payer. They have went 90+ days a couple times. I make good money when the check finally comes but it really sucks waiting to get reimbursed for the overhead

 

[ACE]

Personally, I don’t worry about the receivables unless there is some reason to suspect I’m not going to get paid without some collection efforts. The money in receivables is money made 99% of the time. The occasional bad debt dose chap my ass, but I have learned to let it go after a point and focus my energy on the paying customers.

 

[Lee Stockwell]

I put jobs like that on a credit card....theirs!

 

[Hoody]

Re: what percentage of your gross sits in receivables?

I usually have two weeks production in the "pipeline". I just consider it a "shock absorber" because 99+% of it eventually comes in.

However it hurts when the "pipeline" gets backed up at the wrong time.

I sure does hurt. I have a large plant that I clean twice a year. Costs me over a grand in temp help and chemicals. That company happens to be a serial late payer. They have went 90+ days a couple times. I make good money when the check finally comes but it really sucks waiting to get reimbursed for the overhead

What set terms do you have ? 15, 30, 45, 60 ?? I would charge interest after 30 days.

 

[FLYERMAN]

Zero on receivables.

Hated it and I hope I never have to go back.

 

[daniel@procarpet]

The company my dad works for is large with seven stores and all vendors are paid in net 7 days. 30 days is plenty. I wouldn't allow it to go past that. If I did apartments, it would be I send you a monthly statement and expect to be paid in net 15 days for the whole sum. Not one check here and one there for individual units. But I don't clean them so I don't have to worry about that kind of thing.

 

[juniorc82]

Personally, I don’t worry about the receivables unless there is some reason to suspect I’m not going to get paid without some collection efforts. The money in receivables is money made 99% of the time. The occasional bad debt dose chap my ass, but I have learned to let it go after a point and focus my energy on the paying customers.

I dont think that anyone whos ever been stiffed would say they saw it coming. I dont mind waiting for people to pay as long as they pay within 30 days. most customers pay tihin 30 the rest are closer to 45 but mot much past that. I just hate the run around . For example when you do a huge job that is eating all your working capitol and when you call after thirty days because they didnt pay yet accounts payable has no record of recieving your bill. Thats the crap I hate. It can almost be a time consuming task trying to hunt your money down.

 

[floorguy]

Re: what percentage of your gross sits in receivables?

I usually have two weeks production in the "pipeline". I just consider it a "shock absorber" because 99+% of it eventually comes in.

However it hurts when the "pipeline" gets backed up at the wrong time.

ding ding....

90% of my commercial pay within 10 days, its just something i have setup over the years....

some pay when i get them a bill by thur its payed by monday

some national...a-holes push it 30...but at 30 i call and say uhhhhh...happens 1 out of 50 though

some pay me before i am done when they leave, 1 time type jobs...

some call in a CC....

but like i said most are in the 10-14 day range, most companies cut checks ever 2 weeks anyway

and as Lee put...its nice to have a pipe line....tile it backs up....or you forget to work for a week or so...(things around the house to do )

then your like "oh crap"

 

[Eric Scofield]

Ten to twenty-five large every thirty days

 

[ACE]

The real question is, are you able to put your foot down by charging late fees and risk pissing off a customer that delivers 20% of your Gross? 8)

 

[juniorc82]

The real question is, are you able to put your foot down by charging late fees and risk pissing off a customer that delivers 20% of your Gross? 8)

I have sent a new invoice before with late fee and they never pay it. I think the idea of late fees sounds good but enforcing those late fees are tuff

 

[Lee Stockwell]

Reverse that. Raise price, then offer "prompt payment discount" back to original price.

 

[juniorc82]

Lee your totaly correct. what about those people that just assume you will invoice them, I had a lady who told me to leave the bill on the counter at her home the other day. She looked shocked when I said now is when you pay lol

 

[Hoody]

Lee your totaly correct. what about those people that just assume you will invoice them, I had a lady who told me to leave the bill on the counter at her home the other day. She looked shocked when I said now is when you pay lol

Tell them that over the phone before you get there.

 

[Mike Draper]

WE do about 50% commercial, we bill out at 30 days. Only had 2 residential clients this year that wanted me to leave a bill and I said no, but we'll take a CC. Easy cheasy.