This year I am done with waiting months and just hoping to get paid after work was completed. What do you do to make sure you get paid in a timely fashion?
For route? Bug them
First year I had to threaten legal action cuz one guy was giving me a lot of sub work then disappeared.
For the future? When people start dicking you around with payment; get your money stop servicing them .
Anything over 30 days? Drop em.
Bigger commercial companies? See what they’re typical net is. I’ll put in the bid NET 15 or NET 30 otherwise, late fees will incur
I simply do not do Net 30. For that reason I don’t do a lot of storefronts. I am 80% residential. The ones I do have pay me in about a week or so, one that I do every 8 weeks pays me day of service. I am not in the business of extending credit. There truly is no reason to not be able to fill out, sign, and date a check within 2 weeks. They choose to offset payment as far out as they can. It is just more work on me to keep track of who hasn’t paid. After 2 weeks I am on the phone expecting payment.
I am to the point that if someone NEEDS 30 days to get payment together then they can take that 30 days to get a check ready then call me to schedule in order for me to get paid in a timely manner. My reluctance stems from the President of Advance Auto Parts left the country without first paying, it took almost 2 months to get paid - he was FIRED after payment.
We take a $100 deposit on every job under $1000 and a 30% deposit on every job over $1000.
Our terms state that we will charge the card on file upon completion.
My A/R usually runs at $0, though right now we are at $2150 because of some scumbag that cancelled his card and thinks he’s slick avoiding me lol
Residential
Paid upon completion
Route /commercial
if they are behind in payment email first , call second if nothing after email. Hunt them down third.
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