Dealing with Net 30

I got a call today from waste management about a skunk living under the office building. I tell the guy options but i need to visit the site and I would charge a service fee.

I arrive and he gets some information for corporate and informs me that they are a Net 45 (meaning cant pay for 45 days) company, and that he has to get coroporate to approve the removal as necessary. He doesnt need a bid, if they approve it he pays what he has too. I will be paid for the service fee regardless. I just feel frustrated already by the 45 delay. I am new and this could be a big job, 1-2K kind of job that may turn into more. I just dont see it fair though. I dont even know if I get materials up front.

Is it legal to charge a fee for net 30? I obviously can charge more just for paper work time and having to deal with corporate, as well as the hazard of working in the environment. I just dont see how companies see it fair to do that, I cant drop a load off at their dump and tell them I will pay later, or swing buy recycling and pick up money and say I will bring in cans later.

How do you guys deal with these type of jobs?

I would not because you will be on their list of of qualified venders.........

I agree with Vinke,when you start doing work they can then use you again and often high profile clients can be used as a marketing/ name dropping lever to get into other businesses. Doing big jobs or multiple jobs is much more efficient than chasing acrooss the country doing several small domestic jobs.
It is not uncommon over here to be 90 days for the big National/International companies and it can be hassle doing all the admin, completing supplier questionaires, providing insurances, qualification certificates, Risk assessments and method statements etc but the payback if you have done your homework and looked at the potential work from the client is worth it even if you only convert a % of the clients you pitch to.
If you get a good relationship with your site contact you may be able to invoice for fixed costs of materials etc as soon as you get an order and submit a second invoice for variable costs on completion of works if you word them so not to alarm corporate finance dept, then you get a better cashflow.

Welcome to the world of commercial accounts.

Be thankful he even told you their terms up front as most of the time you won't find out that they are Net 45 until you submit your final bill. Other issues you can encounter are special training to access a facility, insurance requirements, mandatory meetings, job site access time frames, job interference (I don't care what so and so said, you can't put that trap here), and special qualifications (OSHA 10, aerial lift license, etc.). You can always dictate to them that they need to pay a percent for materials, but be ready to shell out 100% of the materials cost yourself (especially on projects under $10,000).

It isn't illegal to tell someone they won't pay now and for most corporate clients you have to realize that they have a protocol to go through with multiple departments to authorize a release of funds and usually cannot pay at the end of service. This payment fiasco is a major reason why I no longer charge inspection fees for commercial accounts and just include it on the back end. On the positive side, once you get in you're now an authorized vendor so you may get quite a bit more work from them without having to lift a finger.

Of course, you can always refuse to accept the job.

I have 25% of my business is either corporate or property management companies and all are on at least a net 30, most on a 60 and a couple on a 90!
Its just part of it, the good part as you get busier, you will soon forget about the money they owe you, and when it goes come in, it will be like Christmas morning! But I hate it too!

I agree with Mike. We operate under the "net, before you die" principle. We have also worked for Waste Management and they are one of

the world's largest companies. Never the less, they hire local people so it's like working with your neighbors. And it's nice knowing

that the check will never bounce no matter how late it is.

I guess I will take it and hope for the best. It could go somewhere big, I hope.

Set up a trapping contract and he wants to look at the exclusions. I am going to give it a shot, I hope its a good thing

I will float ya an 12%,,,,,,,,,,,,

ill float ya at 10% and throw in a set of kitchen knives (a 19.95 Value)
Good thinkin Vinke!

Hey, don't sell those knives short. Our set came with a beautiful wooden block!

Quite the offers, too bad I have become a,knife snob

Just an update, I took the job. I trapped for 4 days and was getting quite frustrated, never takes me long to bag a skunk. They had seen it a time or two during the day.

Well, it turns out on day 2, someone saw it and killed it with a rock, and didnt report it, even though I told the current supervisor tell me even if the find it dead, that its all in the service. The manager wasnt the happiest when he got back from his business trip.

But, he seems happy with me and I go back soon to give his supervisors a presentation.