business contract payments

[TannersLawn]

When you get a business and they sign a contract do you have them pay monthly or yearly?

[GrassMaster]

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Hello TannersLawn:

From what I know the Majority pay monthly.

Now I do read a lot about Companies offering a small discount if they pay a year in advance!

[CCLS]

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I do monthly or twice monthly. If you go yearly (which I haven't heard of or recommend) make sure you get the money up front. Don't do work for a whole year and then bill them. That is just a problem waiting to happen, a better chance of getting stiffed. Personally go monthly or twice monthly, so you don't tie up your cash flow and you don't have to give a discount.

[Phil Nilsson]

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Most commercial accounts are set up monthly ... some are 12 months ... some coincide with the regular growing season. Remember that the months are not all equal as to labor inputs.

[andersc1]

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All of our commercial accounts are set up on a monthly billing cycle. Large accounts that we have bid on do ask what discount percentage you are willing to offer them if they pay a year in advance, but when it comes time to sign the contract they have always gone monthly.

Curtis