PAYMENTS & CONTRACTS

[VALLEYWIDE]

When you have people sign yearly contracts. do most pay weekly, monthly, bi-monthly or yearly and if they pay yearly do they pay up front and if so how does that work. i would like to get paid upfront for the year by my longest customers

[lw4259]

started billing this year

I now bill my customers once a month, most take 15-30 days to pay. So 45 to collect my money now thats a big change from last year pay as you go policy. i would offer any client 10% off if they paid in advance so far no one has taken me up on the offer. I do have to chase a few for payment but my terms say no pay no service.

good luck
Lee

[Elwood]

Most will pay monthly. Trying to get payment more often than that is a hassle and too much time is spend chasing your money. Some, especially commercial sites may want the anual price divided over 8, 10, or 12 months and the same payment made each month, but it does vary from client to client.

Make sure your contract has a clause that states that if they do not pay soon, service will be suspended, late fees added and at a certain time, legal action will be used to collect, at their expense.

[VALLEYWIDE]

what kinda late fee do u suggest and how long to wait for legal action

[VALLEYWIDE]

what kinda late fee do u suggest and how long to wait for legal action

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[PTLlandscapingIL]

i bill monthy or if customers want to pay weekly but thtas it,i hand all my bills in by the first of each month and put DUE BY THE 15TH or it will be a $30 late fee for each days

[VALLEYWIDE]

sorry about the above blank post

[sharp]

I sell annual agreement, whole year of service, they can pay now, no one ever has or can make equal payments starting on the 10th of first month not the end. I also pro rate the service if the want to cancel, I have done $500 worth of work say and they have paid $400 they have to pay, only happend 1 in 20 years. but hey sign your kid up for dance or something they do the same thing but do monthly draft from you account.