Does any one have any trouble collecting from big accounts? My friend in Orlando quit doing big commercial office buildings because some of them wouldnt pay for 6 mo - 1 yr, at best 60-90 days. He finally got fed up and does mostly residential now and does VERY well!
What are your terms, and are you getting paid? This scares me a little being a newbie, and cash flow is minimal at this point. Ive done a couple of big jobs, paid within 30 days on avg.

thanx,

Joe

hiyas Joe

longest i've had to wait was 2 months from 1 job (of course that was sub'ing a job thru a friend...).

typically i get paid in 2 weeks. sometimes that day, sometimes 30 days.

granted, i haven't done any "huge" jobs yet, biggest was just under 8,000 sq.ft.

i wouldn't be worried about it tho Joe. i have typed on my proposal / contract, just under where the prospect signs, it states that payment is due within 30 days. i've no clue if this helps, but i guess it must.

thanx --- Derek.

BTW, now that i look at my proposal / contract, it says next to the space where they sign, "By signing this you agree to pay in full the amount above within 30 days of completion of services."

Large office complex's
If you are dealing with a property management firm, expect to wait along time for your money, dealing with the tennent is much better and we usually are paid within the terms of our contact.
We avoid the management people for that reason.

Joe, if it is a larger bill, enough to make you feel hurt if you gotta wait a while, why not ask upfront when they expect to pay? I know plenty of managers who have a fairly accurate bead on when the check will arrive. If it's outside your comfort zone, tell them so. I tell them it's a cost factor. If they want to lower the cost, they need to make me happy about speed of payment.

Doesn't always work, but if it gets you a check faster half the time....it's half better than nothing.


In general, the larger the company, the slower the payment. You have the right to quote the price higher for slower pay.

Not generally a problem. Just stay on top of your accounts receivable. The amount that slips through the cracks will be a small percentage. That means that the largest percentage of your AR will land squarely on your plate (yummy). Of course, as the amount on your plate grows, the amount that slips through the cracks will increase proportionately as well. This is part of the cost of doing business. Get a good collection letter drawn up, and occasionally resort to using an attorney if the problem is extreme. You'll get your money. And don't fret over it. In the end you will make a LOT more than you might ever lose.




Rick Gelinas
encapman