# Do you drive out of your way to get checks?



## ohiohomedoctor (Dec 26, 2010)

Nice tat Rob


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## Spike7 (May 18, 2012)

ohiohomedoctor said:


> Rule #1 of being in business for yourself. Get the money when its on the table. Short of a massive schedule conflict I will almost always make myself available to receive a check even if its a bit out of the way. If im to busy to pick up a check I need to hire again or schedule better.


i agree . and i don`t feel its in anyway wrong . 

i just got in a predicament this last month , where 3 different clients said they`d send a check , but things happended ,and they didn`t and all my cushion was gone.( i knew the money would come , but that doesn`t help me NOW)
we were down to $150 in our business account , 
so the next few jobs , i had to ask for money prematurely where usually i would have waited till the end. it was embarassing , but i had no choice. 
alot of times on one or 2 days jobs , i don`t ask for deposits , but just have them pay me at the end , but because of this situation , i had to ask for money to buy small amounts of materials,. 

it sucked.

i let my clients know i need payment upon completion. 90% of them don`t mind paying right away for a fair , honest , legal contractor.

i see no reason to act as if i can " afford " to wait for them to pay me at their leasure.


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## ohiohomedoctor (Dec 26, 2010)

Spike7 said:


> i agree . and i don`t feel its in anyway wrong .
> 
> i just got in a predicament this last month , where 3 different clients said they`d send a check , but things happended ,and they didn`t and all my cushion was gone.( i knew the money would come , but that doesn`t help me NOW)
> we were down to $150 in our business account ,
> ...


What phone do you have?


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## AllanE (Apr 25, 2010)

*Checks*

A few months ago I lost my bookkeeper of 5 years, and started doing all of the payables and check writing. As a home builder I receive about 90 invoices a week and write a few dozen checks. Because I was shorthanded, had several homes under construction, and had to watch my time, I started mailing all checks. Previously we mailed about ½ of them. This has saved me so much time it is unbelievable. 

I try to pay quickly, if someone is expecting a check on Friday, I mail it out at least by Thursday if not sooner. I absolutely do not allow anyone to pick a check up, that’s just too big of a time waster. In fact, I don’t even want a sub or vendor to call me, I will not take or return money calls. And same for emails, I don’t return emails unless it’s a dire emergency. I just flat out don’t have time. 

This system is working beautifully, everyone seems happy, and what used to take 1-2 days now takes 1-2 hours. And I’ve pocketed the $70,000 I used to pay my book keeper. 

I’ve also started an experimental program of direct deposit for subs, no invoicing. We do it all digitally, and for that I direct deposit into their bank account. Not talking bill pay, this is direct deposit. This takes 2 days, I send the money Wednesday, and it is in their bank Friday. And no paper, we use a digital PO system.


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## TNTRenovate (Aug 19, 2010)

Spike7 said:


> i agree . and i don`t feel its in anyway wrong .
> 
> i just got in a predicament this last month , where 3 different clients said they`d send a check , but things happended ,and they didn`t and all my cushion was gone.( i knew the money would come , but that doesn`t help me NOW)
> we were down to $150 in our business account ,
> ...


What is up with this? Had the same thing happen to me, I was down to $87. Have plenty to collect, but just in one of those valley's were everything is out and nothing is ready to be in yet.


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## summithomeinc (Jan 3, 2011)

AllanE said:


> A few months ago I lost my bookkeeper of 5 years, and started doing all of the payables and check writing. As a home builder I receive about 90 invoices a week and write a few dozen checks. Because I was shorthanded, had several homes under construction, and had to watch my time, I started mailing all checks. Previously we mailed about ½ of them. This has saved me so much time it is unbelievable.
> 
> I try to pay quickly, if someone is expecting a check on Friday, I mail it out at least by Thursday if not sooner. I absolutely do not allow anyone to pick a check up, that’s just too big of a time waster. In fact, I don’t even want a sub or vendor to call me, I will not take or return money calls. And same for emails, I don’t return emails unless it’s a dire emergency. I just flat out don’t have time.
> 
> ...


Sounds like a good system to use. However, if there was ever a problem with the direct deposit and I was the sub you owed, I would expect you to return my calls. If you "just didn't have time" I would be parked in your driveway so that you could make time for me. 

Not returning calls and emails is bad business. Open communication is the best policy.


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## summithomeinc (Jan 3, 2011)

TNTSERVICES said:


> What is up with this? Had the same thing happen to me, I was down to $87. Have plenty to collect, but just in one of those valley's were everything is out and nothing is ready to be in yet.


I thought that was normal....


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## smalpierre (Jan 19, 2011)

Right now I'm working for a #1 and a #4. #3 has a check for me for some stuff I did a week or two ago, but I'm not worried about him. He's my most favoritiest customer in the whole wide world as long as he stays on top of that tri-polar thing 

#4's are the absolute worst, except for the one you left out - #5. 

these are the guys that never pay. You spend an inordinate amount of time chasing them down, and eventually either you get sick of chasing them, or they disappear. I've managed to avoid those for a few years now.



shelf guy said:


> I agree with everything you said.
> 
> When I first started out, I was very much all about getting a check the second the job was done. I.e. "Hello Mr XYZ customer, where can I meet you to get a check?" and I will still do that sometimes, depending on the circumstances. Also, if I am doing the work for a homeowner, in their home, I think it is normal to expect payment upon completion.
> 
> ...


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## VinylHanger (Jul 14, 2011)

summithomeinc said:


> I thought that was normal....


No doubt. I've been where 87 bucks woulda meant "Time to Parteee!".


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## Big Shoe (Jun 16, 2008)

When contractors call me and say they have a check ready I almost always tell them to just mail it. Most just mail it anyway.

A lot of my customers are not home or out of town when work is completed. So it is pretty much normal to wait for snail mail.

So my answer is I don't waste time and gas chasing down a check.


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## bdoles (Sep 11, 2007)

For me it depends on the amount. If it's just something small (couple hundred bucks), then I'll just have them mail it to me. Otherwise I pick it up. I'm not in the best neighborhood in the world and don't trust checks sitting in my mailbox.

I do love how I can make deposits(BOA) directly from my smartphone by just taking photos of the checks. I haven't been to a bank or ATM in a while. As soon as the check is in my hand and I'm back in the truck, I deposit it.


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## Spike7 (May 18, 2012)

of course there are those exceptions 

i have the greatest out of state client 
i manage a house for him. its rent by a japanese consolate.
he hasn`t even seen the house for about 5 years.

what ever needs to be done , i call and tell him ,and he says " i trust you . let me know how much , i`ll send a check right away"
(i`ve had to do repairs from $200 - $ 200,000 )( its an 8 figure house)
i don`t take advantage . i watch his back when i have other subs there , i really work at doing him right.
its been a great ride so far for 7 years 
he sends money within a week if i need .
or if i really need him to , he`ll wire it .( i`ve only asked that once )

all my designers usually need a week or so.

my biggest problem-payers seem to always be property managers .
seems they always " need additonal paperwork "
or they literally wait till i call after3-4 weeks , and then start the process to initiate payment.
i basically won`t work for any anymore.


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## Builder Butch (Jan 30, 2012)

summithomeinc said:


> Sounds like a good system to use. However, if there was ever a problem with the direct deposit and I was the sub you owed, I would expect you to return my calls. If you "just didn't have time" I would be parked in your driveway so that you could make time for me.
> 
> Not returning calls and emails is bad business. Open communication is the best policy.


I totally agree with Sumitt. I've been a builder for 25 years and averaged 30 to 70 upper end homes a year...before the crash and I pretty much spent Friday hunting my subs down to pay them. If they show up on time and work hard for me all week, I think I should have enough respect to find them on Friday and not make them chase thier money. Needless to say my guys are very loyal to me and watch my back as much as I do thiers.

However, no that I'm out remodeling and doing home improvements my biggest challenge is collections. They just want pay unless you demand it. It just gets on my nerves. I always get it but whenever they get around to it.


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## kambrooks (Apr 24, 2012)

Gus Dering said:


> But if you need the cash right now, what choice do you really have?


Call JG Wentworth!


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## pinwheel (Dec 7, 2009)

TNTSERVICES said:


> What is up with this? Had the same thing happen to me, I was down to $87. Have plenty to collect, but just in one of those valley's were everything is out and nothing is ready to be in yet.



Seriously? Maybe we're just different than many, but we keep a minimum of 3 months worth of bills in savings just for slow times. If we have to use it, the first opportunity we get, we put it back. We've got accounts with nearly all our suppliers & those that we don't, we use one CC that get's paid off monthly.

Again, maybe we just run a different ship than most, but I don't sweat getting paid. If it's a client I don't have a good feel for, I've got a signed contract & advance money & all but about 10% before we're finished, otherwise, money comes at the end of the job. I know that don't work for everyone, but it's worked well for us for well over a decade. If we leave a bill, we leave a self addressed stamped envelope with the invoice to make it convenient.


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## Gary H (Dec 10, 2008)

pinwheel said:


> . If we leave a bill, we leave a self addressed stamped envelope with the invoice to make it convenient.


:thumbsup: I like that idea. Kinda gives them notice, that all you have to do is insert my check and put it in the mail box.


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## dom-mas (Nov 26, 2011)

Ohh, I like that idea too.


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## Jaws (Dec 20, 2010)

You guys must have more time than me, I dont chase the checks down. It gets mailed, I dont even carry the final invoice to the walk, through usually. A lot of times, there is no walk through, until after they have paid. We look at it when they come in. Most of our work is on vacation homes. 

Only check Ive had a problem collecting in several years was almost $85,000, paid late by a commercial client. When they paid it was in two instalments. 

Email is my vote.


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## TNTRenovate (Aug 19, 2010)

pinwheel said:


> Seriously? Maybe we're just different than many, but we keep a minimum of 3 months worth of bills in savings just for slow times. If we have to use it, the first opportunity we get, we put it back. We've got accounts with nearly all our suppliers & those that we don't, we use one CC that get's paid off monthly.
> 
> Again, maybe we just run a different ship than most, but I don't sweat getting paid. If it's a client I don't have a good feel for, I've got a signed contract & advance money & all but about 10% before we're finished, otherwise, money comes at the end of the job. I know that don't work for everyone, but it's worked well for us for well over a decade. If we leave a bill, we leave a self addressed stamped envelope with the invoice to make it convenient.


It all depends on how you start and if you have three months and need 6 months of reserves. I am always trying to get ahead. When I do, something comes up and there it goes.


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## summithomeinc (Jan 3, 2011)

TNTSERVICES said:


> It all depends on how you start and if you have three months and need 6 months of reserves. I am always trying to get ahead. When I do, something comes up and there it goes.


Same here. I've had the three months of expenses put back. Then hit a slow period and there it goes. 2 customers pay at 120 days instead of 30...There it goes..
Now I have only been in business for 4 years. Hopefully when I get to 10 or 20 it will be alot different. I think some guys that are well established (10-15 years or more) forget how it was their first 5 years.


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