[boltedfaultz]

I do work for a Contractor that has paid at either 30 days or stretches it out to 5 or 6 weeks this doesn't matter if its a job for hanging 1 light fixture or a several day job, and lately its over 30 days before he pays.

We always send out statements when it reaches 30 days showing past due and this Contractor seems annoyed by it. We are thinking of adding late fees for accounts of over 30 days and I was just wondering what others are doing?

Another Contractor I do work for pays me always within 7 days of my bill, I drop everything for this guy when he calls and take care of him.

 

[480sparky]

My invoices always state a "Due By" date, along with language providing for a service charge if not paid by that date.

 

[HARRY304E]

I do work for a Contractor that has paid at either 30 days or stretches it out to 5 or 6 weeks this doesn't matter if its a job for hanging 1 light fixture or a several day job, and lately its over 30 days before he pays.

We always send out statements when it reaches 30 days showing past due and this Contractor seems annoyed by it. We are thinking of adding late fees for accounts of over 30 days and I was just wondering what others are doing?

Another Contractor I do work for pays me always within 7 days of my bill, I drop everything for this guy when he calls and take care of him.

C.O.D..Don't leave the job without the check.:thumbsup:


This guy that's taking 6 weeks,,,,,Give Vinny a call and have him fixed.

 

[backstay]

C.O.D..Don't leave the job without the check.:thumbsup:

This guy that's taking 6 weeks,,,,,Give Vinny a call and have him fixed.

Hey Harry, how's the weather?

 

[rewire]

We don't invoice. All payments are due when we complete the job and if it is a large project we get 50% before we start. My banker said he would stop acting like an electrician and I said I would stop acting like a bank. I have walked away from jobs because they did not want to follow my payment schedule but I no longer wait on MY money.

 

[HARRY304E]

Hey Harry, how's the weather?

37 deg warmer than last night it made -14 this morning I know that's summer for you guys...:laughing:

WOW!:blink:

 

[Kryptes]

Be prepared that adding late penalties can cause a customer to not use you again or they may ignore the penalty all together and pay the original amount at a much later date after they dispute it. If its a one time customer get paid on the spot, if its a regular customer you may have to just accept the payments late on occasion. Sadly alot of customers act like they are doing you a favor by giving you work even though its something they need done. I had a customer pay me 48k at 65 days and almost broke me when I started out. We now do a avg of 720k a year with them and some invoices still get paid late....but I am super ok with it now.

 

[HARRY304E]

We don't invoice. All payments are due when we complete the job and if it is a large project we get 50% before we start. My banker said he would stop acting like an electrician and I said I would stop acting like a bank. I have walked away from jobs because they did not want to follow my payment schedule but I no longer wait on MY money.

We all should be doing that..:thumbup:

 

[HARRY304E]

Be prepared that adding late penalties can cause a customer to not use you again or they may ignore the penalty all together and pay the original amount at a much later date after they dispute it. If its a one time customer get paid on the spot, if its a regular customer you may have to just accept the payments late on occasion. Sadly alot of customers act like they are doing you a favor by giving you work even though its something they need done. I had a customer pay me 48k at 65 days and almost broke me when I started out. We now do a avg of 720k a year with them and some invoices still get paid late....but I am super ok with it now.

How much interest are they costing you?

 

[five.five-six]

How much interest are they costing you?

I'm not a ****ing bank. I just stop returning calls from people that have trouble putting a check in the mail.

 

[Kryptes]

How much interest are they costing you?

Well sadly we are calling that part of our cost of doing business. However we have other perks from that customer that more then makes up for it.

 

[sparky402]

So its not just me thats not getting any interest on late payment but basically a smack in the face

 

[Edrick]

I had someone tell me the industry standard is 30 days. I asked if I looked like a bank? We didn't see eye to eye. I don't work for them

You expect to be paid on a weekly or biweekly basis do you not? So why should I be expected to wait 30 days to be paid for my work? I'm supplying a service not a product. There's reasons there's net30 terms for products.

 

[boltedfaultz]

Thanks for the reply's, I guess I will deal with it for now until I build up a better client base.
Just lost a guy I did a few jobs for because I wouldn't do a job without pulling a permit, then I lost another guy because when he had his hands install devices on a rough in I completed, I told him I have to remove every device to make sure they were done correctly before I would call for inspection and I had to redo most of them.
I guess the lesser of the evils for now is the guy who pays late.

 

[sparky402]

Ive been told by most HOs that they usually give the builder a check within a week of getting their invoices and even they dont understand why it would take over 30 days for subs to get it.

 

[MDShunk]

Some builders are just that way. I have/had a few like that. I always get paid. Just not especially timely. It's never been something I've been super okay with, but it is what it is. There was one guy, in particular, who never paid for the last house until I was on to the next one. It wasn't breaking me, so it was sort of like the savings account I never asked for. I can handle a few customers like that. It's not the end of the world.

 

[Hack Work]

We don't invoice. All payments are due when we complete the job and if it is a large project we get 50% before we start. My banker said he would stop acting like an electrician and I said I would stop acting like a bank. I have walked away from jobs because they did not want to follow my payment schedule but I no longer wait on MY money.

That works on residential. But how do you deal with things such as condo buildings, apartments, or small commercial work? You said you do a lot of dock work, aren't many of them owned by restaurants and other businesses?

 

[Hack Work]

Ive been told by most HOs that they usually give the builder a check within a week of getting their invoices and even they dont understand why it would take over 30 days for subs to get it.

Because the builder is using that check to pay his subs from the last job he did. He won't pay you until he gets the check from his next job :laughing:

 

[99cents]

If he has a history of paying in 30 to 45 days, then it becomes your choice if you want to deal with him or not. To me, it's not the length of time it takes to get paid (45 days being close to the max) but the financial health of the customer. If you think this GC is a slow payer because he's always running on empty, then you have a problem.

Oil companies typically pay in 45 days or more. I don't lose a minute of sleep after I send those boys an invoice.

 

[dawgs]

We don't invoice. All payments are due when we complete the job and if it is a large project we get 50% before we start. My banker said he would stop acting like an electrician and I said I would stop acting like a bank. I have walked away from jobs because they did not want to follow my payment schedule but I no longer wait on MY money.

I don't have a single customer that COD. That's the difference between resi service and industrial. I am happy with net 30. Some pay net 90.