Ways to Collect Money Owed in Your Pool Service Business

Getting paid for your services is a vital part of running a successful pool service business. However, collecting money owed can sometimes be a challenge, especially when working with clients who are slow to pay. Fortunately, there are several effective strategies you can use to ensure that you get paid on time and minimize payment issues. In this blog post, we’ll cover key ways to collect money owed in your pool service business, including securing deposits for big jobs and using Square to accept credit card payments.

1. Get a Deposit for Big Jobs

For larger or one-time pool service projects, such as major repairs, installations, or renovations, it’s essential to collect a deposit upfront. This not only helps with cash flow but also reduces the risk of non-payment. Here’s why you should get a deposit and how to do it:

• Secures Commitment: Requiring a deposit ensures that the client is serious about the project and committed to paying for the work. It’s a good way to avoid starting a large job only to have the client back out or delay payment.
• Improves Cash Flow: A deposit helps with cash flow, especially for bigger jobs where you may need to purchase materials or invest time upfront before finishing the work.
• Protects Your Business: If a client decides not to follow through or delays payment, you’ve already secured a portion of the payment, which minimizes potential losses.
• How to Set Up a Deposit:
  • Percentage-Based Deposit: Typically, a deposit of 25% to 50% of the total project cost is standard. This ensures that you have a good chunk of the payment before starting work.
  • Clear Terms in Contract: Make sure to outline the deposit requirement in the service contract, including the due date, amount, and payment method. Clearly state any refund or cancellation policies as well.
  • Use a Payment Platform: You can accept deposits through online payment platforms, which make it easy for clients to pay securely and immediately.

2. Use Square to Accept Credit Card Payments

In today’s world, many customers prefer to pay by credit card because it’s fast, convenient, and secure. Using Square as a payment processor allows you to accept credit card payments easily, providing a smooth and hassle-free experience for both you and your clients. Here’s why Square can be a game-changer for your pool service business:

• Convenience for Clients: Square allows you to accept payments on the spot, either in person with a mobile card reader or remotely via email invoices. This makes it easy for clients to pay you right away.
• Fast and Secure Transactions: With Square, transactions are processed quickly, and payments are securely transferred to your account. This reduces the risk of bounced checks or other payment issues.
• No Hidden Fees: Square has transparent pricing, with a fixed fee per transaction (usually around 2.6% + 10¢ for swiped payments). This helps you know exactly what to expect without surprise charges.
• Invoicing and Recurring Payments: You can create and send invoices directly from Square, making it easier to track payments and remind clients of outstanding balances. Square also supports recurring payments, which is perfect for regular pool service clients.
• Customer-Friendly Features:
  • Mobile Payment Option: With the Square mobile app, you can accept payments at the job site using a smartphone or tablet. Simply swipe the card using a small card reader that plugs into your device.
  • Email Invoices: Send professional email invoices directly to your clients, which they can pay easily with just a few clicks.
  • Payment Reminders: If a payment is overdue, Square allows you to set up automated reminders, reducing the need for you to chase down payments manually.

3. Offer Multiple Payment Options

While credit cards are popular, not all clients will want to pay that way. Providing multiple payment options increases your chances of getting paid quickly and easily. Here are some options you can offer:

• Cash: Some clients may prefer paying in cash. Ensure you have a secure method for handling cash payments and keep receipts for your records.
• Check: Accepting checks is common for many service businesses. Make sure to verify the client’s information, and consider setting clear terms for check payments (e.g., due within 7 days).
• Bank Transfers: Offering direct bank transfers or using services like Venmo or PayPal can make it easier for clients who prefer digital payments. These options are also typically faster than mailing a check.

4. Set Clear Payment Terms

Setting clear and upfront payment terms is key to avoiding misunderstandings and late payments. Be sure to communicate the following:

• Payment Due Date: Include a clear due date for payment on invoices and contracts. This sets expectations and helps clients understand when they should make payment.
• Late Payment Fees: Consider implementing late fees to encourage timely payments. Clearly outline your late fee policy in your contract and on invoices (e.g., a 10% fee for payments made more than 15 days past due).
• Progress Billing: For larger projects, consider billing clients in installments based on milestones. This way, you get paid as work progresses, reducing the risk of unpaid balances at the end of the job.

5. Send Friendly Payment Reminders

If a client misses a payment, a polite reminder can often resolve the issue without hard feelings. Here are some strategies for following up on overdue payments:

• Friendly Email or Call: Contact the client with a gentle reminder that the payment is due. Sometimes clients simply forget or need a nudge.
• Automated Payment Reminders: Use Square’s invoicing system to send automated reminders, ensuring you don’t forget to follow up on outstanding payments.
• Offer Payment Plans: If the client is having trouble paying the full amount, consider offering a payment plan option. This can help maintain goodwill while ensuring you get paid.

6. Use Collection Services (When Necessary)

If all else fails and a client refuses to pay, you may need to take more serious action. Here are steps you can take if payment becomes an issue:

• Debt Collection Agency: If a large amount is owed and all attempts to collect have failed, consider hiring a collection agency to pursue the debt.
• Legal Action: As a last resort, you may need to consider small claims court to recover the money owed. Always consult with a lawyer before pursuing legal action.

Conclusion: Get Paid On Time and Avoid Headaches

Collecting money owed in your pool service business doesn’t have to be difficult. By securing deposits for large jobs, offering multiple payment options like Square, and setting clear payment terms, you can ensure that payments are made promptly and reduce the chances of payment issues down the road. With the right tools and strategies, you can focus on growing your business rather than chasing payments. Stay proactive, transparent, and professional in your payment process, and your business will thrive!