Late Pay

[Guest SoCar]

sounds like NG&G

[Customtinting]

75-85% of my commercial jobs NEVER pay net 30....I have this issue with a major property in Atlantic City.

P.O. states net 30 but its alway net 90.

I figure that if I get my down payment that is more than just the cost of material Im good till the check comes in.

It sucks yes,BUT, they keep calling me back,,Year after Year..so when the work adds up,after a while the check for the last few jobs come in as your starting antother one for them.

When it comes down to a company you never did work for,,,I always ask for 50%...then net 30...In 30+ years we have only been burned twice.

You will get paid....figure it goes from the contractor to purchasing to accounts payable and so on....Most outfits pass the invoice down the line and eventually it gets to you.

Budgeting on your part is one of the most important factors in staying alive.

Its just the way it is...so hopefully while your waiting you got the other COD jobs your doing to live off of!

This can be a problem. In many states, if you have taken partial payment for work done, you will have diffculty taking them to court. And, putting a lean is almost impossible, since they have made a payment already.

[Guest etec]

In the business I am in ( Electrical ) we have this allot, if you really look at it you are financing the job for your customer, see if you can figure out how much you are losing in interest each month you do not have the money in your account, you could consider raising your costs slightly and offer a discount that matches what you normally charge if they pay within 15 days.

if a typical business thinks they can get a discount if they pay within 15 days more than likely they will, but you will still be getting the amount you originally wanted and your paid within 15 days.

your PO still says Net 30 and your invoice must say net 30.

What some people are considering ( I doubt it would work) if the PO says net 30 and you invoice says net 30 some are considering like a late payment penalty or interest charge t make up for the loss.

The last thing a small business can afford to do is finance a job for large companies who have the funds to pay but the longer they keep it in their account the more interest they make on your money.

[Guest tintguy31707]

In the business I am in ( Electrical ) we have this allot, if you really look at it you are financing the job for your customer, see if you can figure out how much you are losing in interest each month you do not have the money in your account, you could consider raising your costs slightly and offer a discount that matches what you normally charge if they pay within 15 days.

if a typical business thinks they can get a discount if they pay within 15 days more than likely they will, but you will still be getting the amount you originally wanted and your paid within 15 days.

your PO still says Net 30 and your invoice must say net 30.

What some people are considering ( I doubt it would work) if the PO says net 30 and you invoice says net 30 some are considering like a late payment penalty or interest charge t make up for the loss.

The last thing a small business can afford to do is finance a job for large companies who have the funds to pay but the longer they keep it in their account the more interest they make on your money.

Smart thinking.