Understanding the cash flow challenges of lawn care and landscaping companies

We have been serving as a collection agency for lawn care companies and other landscaping professionals for over two decades. And our team understands the unique challenges professionals in the green industry face in getting customers to pay and maintaining positive cash flow.

While every business faces challenges in getting consumers to pay on time, lawn care professionals and landscaping companies face unique industry-specific challenges.

And it’s important to understand these challenges to develop a system and strategy to get paid on time and communicate with those customers who are not paying you.

If you own and operate a lawn care or landscaping company, you’ll want to check out some of the reasons why you may be struggling with on-time payments and cash flow.

Why your lawn care customers are paying late or not paying at all

Understanding some of the root causes why consumers are not paying their bills is the first step and understanding how this affects your business.

The first and most obvious is that the consumer is having financial difficulties. They may be facing a mountain of other bills and debt and have placed a low priority on your lawn care invoice.

Many consumers may also have poor organizational skills when it comes to bills and money, or they have simply forgotten.

As we handle debt collections for lawn care companies, oftentimes we hear that there is a dispute about the bill or there is a dissatisfaction in the service they feel they have received from your team.

Challenges unique to lawn care and landscaping payments

There may be a perception that lawn care services are discretionary for some. What that means is some consumers may feel they can put off paying your bill to prioritize other essential expenses such as utilities.

Weather and the seasonality of lawn care services. If a contracted service, such as weekly mowing, is skipped due to rain or other weather, a customer could object to a monthly bill, even if their service was eventually delivered.

In the offseason, customers may just forget the value of the service you performed a month or two ago. In their head, it may be less tangible and they could decide to put off paying your bill.

In some cases, customers feel there’s difficulty proving that lawn care services were performed, which we often see in absentee ownership. Those who own rental properties or vacation homes sometimes rely on the word of your business. If they don’t feel the service was delivered, some customers question whether it was delivered up to their standards.

And then we hear “the neighbors did it cheaper” scenario. Many consumers as you well know compare prices and if they feel someone else got a lower price from a competitor, they may question your pricing strategy.

How to minimize late paying customers in the lawn care business

One of the first steps, if you haven’t already, is to take this part of your business seriously.

Implementing sound accounting procedures from top to bottom can mean the difference between being in business or not. This is critical mission to the health of your business and it deserves your attention.

Make sure you have a clear, professional, and easy-to-understand invoicing system.

Shorten payment terms if you see customers lagging on paying your invoices. It’s perfectly acceptable to use net 10 or net 15 terms, especially for newer customers.

Consider payment due upon receipt.

Make sure you offer flexible and easy payment methods because the easier it is to pay the better. Those include:

Accepting credit and debit cards.

Digital payment options such as portable terminals, Venmo and even PayPal.

Place a payment portal on your website with the assistance of a professional IT provider.

Make your invoices easy to read. Includes service date, due date in bold and any late fee policies.

Using a collection agency that understands lawn care and landscaping

There’s nothing wrong with using a collection agency for your lawn care business. One reason many businesses in the green industry get into trouble is that they are too busy to focus on invoicing.

You can mitigate many of these challenges by using a debt collection agency that understands the green industry and your unique challenges as a local business owner.

Bottom line? If your lawn care company is struggling with cash flow and getting customers to pay, improve your internal procedures and get the help of a knowledgeable collection agency.