Would you mind sharing what your payment terms are for your customers, both residential and commercial? Do you collect payment at end of service, do you charge a fee before dispatching a tech, do your commercial customers have 30 days to pay for work done? Do you charge a late fee if not paid within X amount of time?
Looking forward to your reponses!
Thanks in advance.
Following. I need to set up late charges and the workflows for that.
We currently collect when the job is complete. We take a deposit if they are booking far in advance. This works well for us so far.
Our residential customers are also COD so the office confirms payment will be available for the TECH to collect while on site while scheduling the job. The techs call the customer to confirm they are there before heading to site and confirm payment & the 4% electronic fee for credit card payments.
Our commercial clients complete a credit application to get payment terms. They are granted Net10; Net15 or Net30 based on their size and credit ranking with CDI. We do not charge a late fee but we don't play when a customer doesn't pay within our payment terms they are moved to COD with no terms and must pay upon completion of the job.
All residential customers are required to pay at completion of the job. For larger installations, we require a deposit paid up front. Commercial customers vary case by case but most are net 30. We haven't gotten to having charge late fees. Our CSR's are very clear up front to customers what they can see as minimum charges and that payment is due upon job completion.