Comments on: Getting Clients to Pay On Time

By: jami coffman

jami coffman — Mon, 29 Sep 2008 21:03:15 +0000

I agree totally with these comments. I own my own cleaning business and the huge comapny I have a contract with owns several apartment complexes. The contract says net 30 but they pay like net 50- 60. I am a small business and have bills and employees too I feel so discouraged like I should close my doors. It seems I just can’t get caught up from being behind because they want to stick to their net 30 so to speak. This new opt program they deveopled is suppose to get contractors paid with 15 days not happening yet. Any suggestions write back. and when I call or email to check the status of payment they get snippy.

By: Trevor

Trevor — Wed, 18 Jun 2008 22:33:19 +0000

Describes me to a” tee” Shawn.Great comment!!After 4 years i got taken.Wingstop!!!!!!!!!!!!A resturant based out of Dallas.A little over 2000$.I cant tell you how mad i am!He was there during most of the repairs being made.It makes me not want to trust anyone anymore.

By: Roxanne Darling

Roxanne Darling — Fri, 25 Jan 2008 10:02:25 +0000

These are both great ideas (get deposits and due upon receipt). I was really impressed with your comment about the energy discrepancies Shawn. I think it is difficult to see how being nice morphs into being taken advantage of, until the practice is established. “We cannot change anything until we accept it. Condemnation does not liberate, it oppresses.” Carl Jung

By: Shawn L Young

Shawn L Young — Fri, 25 Jan 2008 07:02:15 +0000

This is a really good topic Rox. Recently my studio has adopted a “no more net 30 accounts” rule! Any new clients will need to pay at the time the job is completed (cash, cc, check) or make a deposit if appropriate depending on the job. I simply tell the new client we are not setup to do net 30 accounts, we accept cc, checks, cash for payment, which will be due when the job is completed, this has helped us to keep accounting costs down which in turn helps to keep our pricing down – so it’s a win-win!!! And it saves paper!!! Then I smile, look directly in their eyes and nod my head once – like “that’s that”. (When I say “and it saves paper” it always makes me smile because I feel like I’m helping to save the planet and I feel good about what I’m saying!) What I’m actually feeling at the time is the most important thing to me – because it seems the client always picks up on my attitude, no matter what words I use. And now when I get paid I take care of the money “malama pono” – I don’t just throw it in the tray like it was a scrap piece of paper. I hang on to it for a minute and mark the invoice as paid – so the client sees that I view it as valuable.

I don’t act like it’s a big deal not to offer net 30 (anymore) – because in my mind it IS a win-win! The local grocery store doesn’t do net 30 when I buy groceries :)))) So there is really no reason why I should. Every business has either a checking account or cc.

In the past I had self-esteem problems about what our services were worth and I felt awkward about talking about payment terms (and the client would pick-up on my strange energy). I think because I would avoid being direct, the client took that as “it’s not important to me that I get paid, so whenever I get paid is ok”.

For the last six months has been the worst when it comes to clients not paying and I’m owning up to the part that I played in that.

This has been a huge learning experience (and personal growth).

Mahalo for the topic Rox!

By: GG

GG — Sat, 19 Jan 2008 07:07:25 +0000

Most of my clients are encouraged to pay in advance and so they do – or they pay after the first session. I also have subscriptions for repeat advertisers which is something I am liking because it is auto payment and billing – which means less invoicing and tracking time for me.

Thanks for the Rotten Neighbor link – it will fit right in on my blog.

PS I enjoy your blog and videos!