collecting receivables turnaround?

Kris Caswell said:
From your experience, typically when dealing with comercial propterties how many days on average does it take you to recieve a payment once an invoice is delivered?
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Kris the first thing I would ask you is did you set up as a vendor?

This means you have a Master service agreement in place if this is a Chain for 500 company you will repeat service.

If a One time job I would have demanded payment on completion and had a credit card or plan on how they would accomplish this before service began.

Now if this is going to be a regular customer call the accounting and verify they have everything they need to pay you timely.

When I first started like everyone I would wait 45 60 90 days to get set up. As I got smarter and figured out the way things worked i started getting payments 20 days or less that 40.

Most companies are on NET 30, don't get worried if the first payment takes longer.

make sure the correct info is on the invoice, this also helps to know what they want.

Remember it may seem they are giving you a hard time but keep in mind Mcdonald's has 150,000 plus locations. Imagine being in there shoes
 
Mine are mostly all Net 30 days. I have one that doesn't pay for 120 or 130 days and they just can't seem to figure out why they always get pushed to the bottom of the list when they want something done.
 
EasyPro has commercial/multifamily clients any where from 15 - 45 days .... We have industrial accounts that are 60-90. But this year we moved to a factoring company that gives us 80% upfront and the remaining twenty when the customer pays minus a 1% per ten day fee. So we do a job for $10,000 - with in two days of completetion $8,000 is in the bank ... 30 days later the client pays - Our factor takes $300 and releases the remaining $1,700 to us.

Really helps with Cash Flow!
 
As Ron mentioned the ones that we are set up as a vendor it is usually under 30 days. The few that we do that are controlled by third party are the ones that takes 45 to 60 days or more.
 
The hard part is getting to where you can get in the flow, and balance your cash flow. I am with Ron, if it is a one time customer, they are immediate payment, because the longer you go on a one time customer, the harder it is to get paid. I also will wrap up services for non payment. I have been burned a few times by people that continued to order services, and then went bankrupt. I don't like that game.
 
DJ Carroll said:
EasyPro has commercial/multifamily clients any where from 15 - 45 days .... We have industrial accounts that are 60-90. But this year we moved to a factoring company that gives us 80% upfront and the remaining twenty when the customer pays minus a 1% per ten day fee. So we do a job for $10,000 - with in two days of completetion $8,000 is in the bank ... 30 days later the client pays - Our factor takes $300 and releases the remaining $1,700 to us.

Really helps with Cash Flow!
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What do you do when they bk on the whole thing and most of that profit is already spent on seminars, payroll, fuel and manicures? Lol.

Don't think it can't happen. I have had Casinos, self owned pm's and even a big airline bk on me to the tune of more than $30 in one year alone. Ron has had bk's in the hundreds of thousands. We don't even count it as our money till it has cleared their bank account and even then a good bk attorney can demand it back if they paid you and didn't pay other vendors six months prior to filing.



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Be carful with credits cards from corporation. The laws are not in your favor as a business doing business with customers.

Bk judge can demand money spent as written off. Sounds crazy but it's true , no secure cards are exactly that. Not secure, Albertsons did it back in 2008. Bk judge said they used cc to sustain a failing operation to make balance sheets look good to share holders and left them holding the debt. (Bad stock) they reverse a percentage on banks. Banks came right back to our terminal and by user agreement took the money back in 21 days with a terms clause.

It all sounds crazy but cc money isn't yours for up to six months. Check your agreement you will find out this is across the board.

If you have a slow payer and they give you a credit card after 90 days late and never catch up but use card. Be vary cautious.


Oct event San Diego free free text me for more details !!
 
We are tight now, no one in this economy over 35 days they get a call, 45 days a cancelation


Trust me I've had the nearly 1/2 mil 90 days late. Not happening it was no fun in the down turn. The next ones around the corner and we won't get caught.

Oct event San Diego free free text me for more details !!
 
Scott Stone said:
The hard part is getting to where you can get in the flow, and balance your cash flow. I am with Ron, if it is a one time customer, they are immediate payment, because the longer you go on a one time customer, the harder it is to get paid. I also will wrap up services for non payment. I have been burned a few times by people that continued to order services, and then went bankrupt. I don't like that game.
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Important to know when to do that.
 
I've had Walgreens bounce checks along with the largest grocery store chains and Burger King corp.

So don't think it can't happen , it the last ten years it has.

Amf files bk every time the law allowed. After the third one I said no more. They call Jim cause I referred him


Oct event San Diego free free text me for more details !!
 
I don't know what bk means ...

But when Sky gets our receivables they are buying them from us. Our receivables still run in the 40k range but would be alot higher with out our partnership with sky.

Once they are sold - all collections becomes the responsibility of Sky Business Credit.

As far as my profits for seminars and mani's - no worries there Tony!
 
DJ Carroll said:
I don't know what bk means ...

But when Sky gets our receivables they are buying them from us. Our receivables still run in the 40k range but would be alot higher with out our partnership with sky.

Once they are sold - all collections becomes the responsibility of Sky Business Credit.

As far as my profits for seminars and mani's - no worries there Tony!
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I think bk mean bankruptcy.
 
DJ Carroll said:
I don't know what bk means ...

But when Sky gets our receivables they are buying them from us. Our receivables still run in the 40k range but would be alot higher with out our partnership with sky.

Once they are sold - all collections becomes the responsibility of Sky Business Credit.

As far as my profits for seminars and mani's - no worries there Tony!
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So they are buying receivables for 3-20% no questions asked?

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