Don’t accept cash, check, or IOUs. Have credit card on file for every customer and charge card after service.
Here’s the story: in my first year of the cleaning business we did a deep clean for a customer. The house was a disaster but our team powered through. When I went to charge the card, it was declined. I called the customer but no answer (of course).
I called again, no answer. I kept trying to charge the card but each time it came back declined. Finally, after 2-3 weeks of trying to capture funds daily, they were finally released and we got paid.
Since that moment, we vowed to never be put in that position again and we require cards on file (and a 24-hour hold) on the card before services are rendered.
If you’re reading this and think “I can’t do that.” Yes you can. You absolutely can and you should. If you’ve ever been burned by a customer who never paid, you should have done this yesterday. There are so many good people in this world, but I would be naive to say there weren’t also some bad people too that take advantage of small businesses.
Protect your business, set your standards, and never vary. This is your business and you can manage it how you want.
If you use Booking Koala, here’s an article on how to set up automatic holds on customer payment info prior to the booking.
P.S. if this is your first year in business or you’re about to start, I hope you’ll appreciate this post
Until next time!
Logan
