Customers pushing out payments

[manuellynch]

Seems like we are constantly hearing about sign companies being screwed over by their end customers...what do you do to make sure you get paid? Answer poll if you would - or comment.

[jerseysign]

50% deposit, balance due BEFORE install.

Been doing it that way for over a year, we have really pulled our list of "term" customers.

Terms defined for us = Net 10.

It was a big step for us, we used to be very relaxed in this area, but i believe it is absolutley vital if you are going to survive.

To my knowledge we have not lost one customer do to the change.

Not to get off subject, but we have all but ceased doing any installation work, we have been burned too many times.

Edited March 9, 2010 by jerseysign

[HansonSigns]

Well, we also require a 50% deposit, balance due within 30 days. Most of our customers come very close to that timeframe, and some really try to get us paid quicker. About 10% of our receivables are over 30 days (between 30-90 days).

We even have one customer who's invoice is over 10 months, he's been making payments and their balance due is less than $100. We got a letter from him saying that while his business has been closed for the past several months, he is trying to pay us off because he appreciated our patience. If only they were all that way...

[paul321]

We have 2 policies....Retail customers always give 50% deposits for the sign work and pay for permits in full. The balances are due at time of completed installation. The balances are paid in full by cash, certified check or credit cards. Credit cards are a 50/50 chance sometimes. We do not accept credit cards for fast one time signs, This has worked very well for over 20 years.

National account sign companies, all new accounts pay 50% deposits and permits in full. Terms are very limited to within 30 days, unless there are pre-set terms that I agree to. Rush jobs are always prepaid. When a national sign company needs you there now, I want payment now too. It works, believe me.

We do have many "long term" national accounts that pay on time, they are the ones we cater to, they are golden. We have some that pay us upfront because they to know money talks and we make them look great. We have others who pay by credit card as soon as the sign off and photo is received. The bad ones are weeded out fast.

When I, and almost everyone I know eats, gets a new car or buys anything we have to pay for it then. We dont eat today and pay in 30 to 90 days or when we feel like it.

I like making signs, not chasing money. What ever works for you, dont be afraid to make the rules.