to ask for payment in advance

[tequilasunset]

I am just about to launch a new business offering a specific service to pubs, hotels, bed & breakfasts etc. (think along the lines of window cleaner, but not).

I had planned to charge for the service 4 weeks in advance, but my DP has said that he doesn't think anyone would pay upfront and i will have to charge at the end of the 4 weeks for services already carried out.

I feel uncomfortable about this because if somebody doesn't pay, i will have done the work for nothing.

What do you think? Wibu to ask for payment in 4 weekly advance blocks? The fee would never exceed £100 every 4 weeks so it's not like i'm asking for thousands upfront.

It really depends what it is. I think it also depends on whether you’ve already been doing it so have a customer base or not.

It depends what the industry standard is. In most cases businesses would expect to pay for services in arrears so unless there is a shortage of competition in whatever area you are in I can't see the upfront charges being attractive. Could you maybe ask them to pay weekly in arrears instead of monthly?

There are no other companies offering the same specific service as i plan to, at least not that i could find.

Maybe i could offer them an option of paying weekly in arrears or 4 weekly in advance?

You could ask for a downpayment upfront with the remainder paid when the work is completed. However I think you'll be hard pushed to find a pub or hotel to pay for a service before work had started.

It's not that kind of service - it would be a continuous thing. Probably 3x per week, every week.

Tequila I'm in one of the industries you have said you are targeting, I work in branch in a large company

I can categorically say, we never, and would never, consider paying in advance for any service and I think that's pretty standard.

I'm sorry if that's not what you wanted to hear, I understand it's risky & tough for small business (DH is one) but that's just the way it is when you start to deal with chains.

Welcome to the world of small business owners. 75% of your time will be chasing up unpaid invoices.