Electrician Talk banner
1 - 20 of 33 Posts

·
Registered
Joined
·
11 Posts
Discussion Starter · #1 ·
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.
 

·
RIP 1959-2015
Joined
·
39,618 Posts
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.:mad:
 

·
Registered
Joined
·
2,508 Posts
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.
 

·
Registered
Joined
·
290 Posts
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.
 

·
RIP 1959-2015
Joined
·
39,618 Posts
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:
 

·
RIP 1959-2015
Joined
·
39,618 Posts
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?
 

·
Registered
Joined
·
1,532 Posts
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.
 

·
Registered
Joined
·
11 Posts
Discussion Starter · #14 · (Edited)
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.
 

·
Premium Member
Joined
·
20,981 Posts
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.
 

·
Banned
Joined
·
1,246 Posts
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?
 

·
Moderator
Estwing magic
Joined
·
27,428 Posts
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.
 

·
Registered
Joined
·
2,428 Posts
rewire said:
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.
 
1 - 20 of 33 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top