Reasons As To Why Lawn Care Firms Insist On Advance Payments

By Author: unknownmem
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There are several reason as to why lawn care firms insist on advance payments. This is usually under a scheme where they demand at least a ‘down payment’ before they can embark on a lawn maintenance project. Where the lawn maintenance services are paid for monthly, the lawn service firms will tend to demand at least the first month’s payment, before they can start work on site. Granted, where they are contracted to do specific (small) lawn maintenance tasks, they show willingness to take payment afterwards. For the major lawn maintenance projects though, some sort of advance payment (or ‘down payment’) is usually demanded and we are trying to find out why this is the case.

As it turns out, there are at least three reasons as to why lawn care firms insist on getting at least partial advance payments:
They appreciate that they have little room for recourse in case they are not paid. In case a client fails to pay, they may decide to uproot the grasses they planted on the lawn: but this wouldn’t help them in any way. They can’t go to court either: as they stand to lose more, in legal fees, than they’d ...
... get paid even if they won the cases. Neither can they retaliate by ruining the reputation of their client – as that would have the effect of pushing away the other ‘good’ clients: who’d get the impression that they may be subjected to the same treatment in case they are unable to pay…

Simply put, a lawn service provider who is not paid by a client has very little room for recourse. It therefore make sense for all lawn service providers to avoid that situation (of not being paid, in which they have very little room for recourse) by demanding at least partial advance payments as a sign of goodwill.

The sums of money under consideration are usually small, anyway. Thus, it is not understood why anyone keen on landscaping would want to postpone the payment of such a small amount of money. The small magnitude of the amounts of money in question also means that the lawn service firms can ask for them from their clients in advance, without risking running afoul of the clients. If the sums of money under consideration were huge, the clients would be hesitant to take the risk of paying them in advance. But being small sums, they pay them willingly. Of course, the lawn service firms’ side, things are different. For while the amount paid by each client seems small (to the client), the cumulative sum received by the lawn care firm from the various clients in advance turn out to be rather substantial.

They need at least part of the money to buy supplies and pay for their operations. Thus if they opt to use the sums of money they may have gotten from other former clients to finance new clients’ projects, they may end up experiencing cash-flow problems. To avoid that, they opt to finance each client’s projects with money received from that same client. That further feeds their insistence on receipt of (at least partial) advance payments for lawn care services to be rendered.

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