Payments from commercial cleaning.

Clean County PW

Clean County PW

Active member
I have a Commercial Bldg. That I will be powerashing in a couple of weeks and tomorrow I will discuss with them the payment process.

I'm thinking about asking between a third or maybe even half of the payment up front and then the rest upon completion. This is for a onetime cleaning only.

For anyone that has cleaned a commercial bldg. that was for a onetime cleaning only how did you accept payment?

Thanks
John/Clean County PW
 
John,

From what I have read about this subject many get a partial payment up front, or when the work is half done they get another partial payment and the balance when finished.

I bill my accounts, I have a DUNS number and that is the only way some will pay.

Is this going to be a montly account or one time job? if one time I would ask for 50% up front and the balance when done.

If monthly and it is a large account with many locations bill them with 30 days to pay.

You will find others do things differently but the main thing is be sure you know who to send the bill to.

Fatal error to assume the manager is the proper person, most times he/she is not the person that handles billings.
 
John,


Oh boy payment????

Some will tell you that they have collected commercial accounts up front and some will tell you that they have been told to take a hike.

Think about this for a minute? You want your money up front because you don’t trust the people? Why should they trust you? I agree with this is a large job and you want to be paid before the end. This is understandable in the business world. Why should you float their operation? But ask yourself why should they float yours by having them pay up front.

Here is what I recommend, get a draw on the job when 25% is complete. And at 50% 75% and the rest when completed.


Now if there has ever been a problem with a customer then definitely request for your money up front.

This stands for commercial work not residential. Just a reminder so no one pulls their hair out. Just remember we don’t know these customers and they don’t know us.


Jon,

Jon mentioned Dunn numbers. if a company has a dunn number that means you can find out there credit rating. dunn is a fantastic service for finding out basic information on a particular customer about whether they pay on time or at all.
 
How big a project in dollars are you guys talking about? How long will it take you complete it?

Our terms are due upon receipt of invoice (we mail them) and generally get paid in 30 days.

Dave Olson
 
The job is for a couple of thousand and I plan on completing it in 2 days or possibly in one very long day. A lift will be use to complete this job.

The owner of this bldg. agreed to pay 1/3 up front and the rest upon completion. I am excited about tackling this job especially considering that this is a commercial job which is a field I'm so ever slowly starting to crack. Residential is a whole different animal which I never really had much of a problem collecting money from in the 6+yrs I've been doing my business.

This Bldg. is a Dryvit sided bldg which isn't to dirty to start out with. Can't wait to get started.

John/Clean County PW
 
What I used to do was do the bigger jobs for reputable companies and then invoice them NET 30 days. If I did not get paid on-time I would then call their accounts payable division and politely ask.... "where everything was in the system". that was a polite way of saying... "I want to get paid and you are late!"

Most of the time I had no problems getting paid within 30 and sometimes with some very good accounts with property managers 15-20 days.

When you start dealing with bigger companies they do not pay immediatelybecause of all of the paper process it has to go through. So, before anyone ever goes in and decides they want to start doing commercial cleaning you need to be able to carry yourself financially for 30 days and possibly a little longer. it really is money in the bank so, go-ahead and do the work and wait for the check.

They will pay you but they do not like to keep cutting a bunch of checks. you can actually make a lot more money if you are willing to just sit and wait for the post man to drop that envelope in your mailbox.

hope this helps............Dan
 

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Try to think of it this way: what do you want the guy to tell his friends when the job is done? That you did a great job but he had to pay half up front to get it? These kinds of people know other building owners/engineers/managers etc. that can be good business for you. If they are a reputable company give them 30 days, you are more likely to reap the benefits later from the referrals they give you.

Matt
 
John, my experience with commercial accounts has usually been 30 days, and unless the job requires me to put out a large amount of money to complete it i.e rental equipment and such, 30 days for me is just fine. Just an ironic note, You stated the building wasn't very dirty. I have found that jobs that are very dirty, depending on what the dirt is obviously, tend to give you a more dramatic difference in before and after looks therefore a very happy customer, and some people with buildings that are not very dirty may have a unrealistic idea of what it will look like after the cleaning the finished, not trying to scare you just a FYI.
 
John it sounds like you took an approach similar to mine I always bill them as 25% up front 50% upon completion and 25% 30 days it seems to work well if you mange your account right and everyone of these large company's has seemed to love it. The key for them is keep as much money in the bank as long as possible to collect interest. Good luck on the Completed job! Andrew/Safe Clean
 
AFTER I GET THE O.K I SIMPLY SAY "ACCOUNTS RECEIVABLE HAS ASKED ME TO ASK YOU HOW WILL YOU BE MAKING PAYMENT" THIS WILL TELL YOU WHAT THEIR PAYMENT SCHEDULE IS,THEN YOU CAN NEGOICATE. USING THE ACCTS REC THING MAKES YOU SOUND A LITTLE BIGGER. GOOD LUCK. DAN
 
Did a store front for a Tractor Supply Co store on 9/23 and turned the invoice in the next day. After a month and a couple of days, I called the local store and got the number to corp. Called there and asked for AP dept and had to leave a msg and got called back the next day. The lady told me that she would set up an accout for me and get my check out today. Claimed that she just got the invoice on 10/25.

How long would it have taken if I hadn't called?

Learn as you go......

Anthony


PS> Just a small job....but still
 
Don't shave or take a shower for a couple of weeks, dress up in the worst clothes you can find, and eat raw garlic on the way to the accounts payable department..... They'll pay you fast just to get you outta there... :D Chuck
 
Payment

Its been my experience to ask "What are your payment terms" up front. If its a big job I ask for Material money and bill them to thier terms if I agree to them. Pretty simple.
 
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