Getting paidBy George Bishop

The largest problem we have in the restoration industry is getting paid for our work.

We have put up with all kinds of payment difficulties, from adjusters and insurance companies taking 90, 120, or 180 days to get payment to us (if they did at all), to ignoring all our signed paperwork, and more.

In 2004, we decided to be proactive and fix this problem. In 2004, our restoration receivables over 30 days were at $130,000. Today, they are at $2,200.

We have solved this problem with a “credit card only” policy on all restoration jobs, unless the client is well-established with our company.

What this means is that if a new client calls us, they have to secure the job on a credit card before the truck leaves our business location.

No credit card = no work. Period.

The card has to be able to carry the balance of the estimate cost or a limit set by the homeowner.

We check to see if it will.

If it doesn’t, we don’t do the work.

If it is a large job, we run one-third at the start of the job, another one-third halfway through the job, and the final one-third on completion.

We will work with the adjuster or company by telling them if they pay us directly in 15 days, we will not run the card.

If it is a client in good standing, this does not apply.

If it is one of the “good” adjusters we work with and they tell us they will pay us direct within 30 days, it does not apply.

Most of our jobs range from $5,000 to $20,000. This plan keeps everything in check and accountable.

If we run the card, we work with the insurance company or adjuster and send all estimates and final invoices along with all copies of signed paperwork to them, directing the insurance company to make all payments to the homeowner.

One of the best features of this plan is you stay out of the middle of the fights between insurance companies and homeowners, as well as them trying to reduce your price.

The insurance companies and adjusters have brought this on themselves by not taking care of restoration companies that are saving them money.

Since we have started this plan I have lost three restoration jobs, and we perform a large amount with 21 employees. Got to http://www.advantagecleaningteam.com/ or http://www.janiservu.com/