| Portable Restroom Operators Discuss Collections - Policies- Procedures- Success and Failures |
Good news for some and not so good for others. Receivables are, over all, good, with the average collection rate
of money owed, coming in at 99.20%. Typically operators reported writing off less than 1% of their entire billing
as uncollectible. It’s important to note that overall best collection averages were reported in larger cities across the
United States and appeared to get worse in more rural areas. For definition of an average we did not include a few
reports of 18% and higher, assuming they were likely to be isolated incidents.
Areas such as Missouri, Mississippi, Louisiana, Arkansas, parts of Oklahoma and parts of Texas had average write
off percentages at about 3%. Coverage running the entire length of the East and West Coast came in at below 1%.
From the responses, we saw little change in the percentage rate from one collection policy to another with the
exception of an escalation of uncollectible money for companies that reported having no defined policy.
Glenn Greeno of Ameri-Can in Illinois reported “Over the last few years, it appears that we can count on about 90-
92% (8-10% uncollectible). The loses are either outright deadbeats or bill disputes particularly about damages (after
all they’re ‘just a toilet’). The biggest losses seem to come from ‘community organizations’ on special events”
concludes Greeno. “Payment up-front will be the words heard this year,” he said.
“As to contractors, when the truck stops coming the checks start coming, and it’s amazing how they don’t even
call...because they do know,” Greeno continued. “If you’re to service a big project for a contractor at a ‘big’
company, like International Paper, don’t assume the best. Ask for references on the contractor, and ask the
office/plant staff where the work is taking place, if there are payment guarantees for subcontractors like yourself.
Don’t make the mistake of being so hungry for business that you can’t ask reasonable questions. All of our lives in
this industry will be improved greatly when we all start walking away from the kind of ‘setups’ for fraud and abuse
that are out there” he said. Greeno concluded, “The Portable Sanitation Association’s Mid-Year meeting is a great
place to learn the ropes, and avoid the traps, from those who have seen/experienced them.”
Veteran operator, Ron Inman of Northwest Cascade, based in Seattle, Washington explains their company reports
less than one tenth of a percent as uncollectible. “We have a very liberal credit policy, pretty much open credit to all
until they have proven we should not extend them credit. We want anyone that is more than 30 days past due to be
contacted and asked if there is a problem” explained Inman. “If they respond and make a promise to pay we will
work with them. If they do not respond or promise to pay and do not follow through we will stop service and/or
pick up the restrooms. In our area, liens don’t usually apply for our services. We can attach the contractor’s bond
and that works for us on the tough ones” he said. “We do not stop service on a unit and leave it out there. We do
not put a note in the unit that we have stopped service and let anyone that goes in the unit to know why it is not
serviced. We have seen this done and believe it is not the right way to go” he closed.
From the other side of the continent, a Northeast operator lays out an unwavering policy that works for them. “We
pick up equipment when the account is 120 days old (advance billing). If internal calls have failed, they are
submitted to a collection agency immediately after the equipment is picked up, for a flat, low fee. If the amount is
more than $300.00, they are submitted to attorney for 1/3 of collected dollars. This process is automatic and
relatively easy to maintain. We sue everyone who owes us $300.00 or more with no exceptions. Still we will purge
1% of sales as uncollectible this year, which are for the most part older judgements, which may pay in the future.
This is up significantly from prior years with the same process. The key is watching the larger accounts closer (60
days), and getting the attorney on all of them, early as possible,” he closed.
Out of Texas and reporting 3%, Julie from K&H Portable Toilets in Brenham explained, “We are allowed to file
‘Theft of Services’ charges with the District Attorney. It is similar to hot check services. You send a certified
return receipt letter with a 10-day demand. Then you file. You do not put liens on the property. You go after the
individual or company directly. This works very well. No one wants their name plastered on the local radio” she
said.
Also from Texas, Robert Elder or PitStop Portable Restrooms based in San Antonio says they have less than 1%.
Outlining their program, Elder explains that each month they monitor who is late giving them a 15-day grace
period. Once the period has expired, the company stops service until payment is received, which he says usually
happens quickly. Elder did note if they are very past due they are sent to a collection agency but also explained
most of those, were prior to implementing the new system.
“We begin by getting good information when they call in their order” says Odell McCoy of Big Oak Septic based in
the mountain community of Coarsegold California. McCoy explains that information gathered includes, “the
homeowners name and current address and phone number, the contractors full name and address, not just a PO
Box, his contractors license number, who in the office do we talk to if there is a billing situation.” If the contractor
falls behind, McCoy says, “If there is no response from the contractor and they fall behind I call the homeowner
and let them know we are not being paid. On rare occasions when we do have to chase customers I use the
mechanic’s lien - and even more rare, Small Claims,” he closed.
Based in Visalia, California, Terry of AAA Services explained, “on bad debt, we have been running about 1% of
total sales. We have one full time collection person to cover the 200+ accounts. She calls anyone over 30 days to
"clarify their payment schedule" or as a "courtesy call." The calling is more aggressive beyond 60 days and we have
been known to interrupt service. That usually prompts calls when we seem to only get answering machines.
Depending on the response of the customer, we will pull units. We try to work with them as much as we can to a
point. Once the department feels they have exhausted all efforts, I use a collection service - Transworld Systems.
We are set up on line such that we submit the accounts via internet. They send nasty letters for 60 days. This
usually prompts about 10% to pay or at least contact us with a plan. The other 90% usually go to a hard ball
agency that will pursue legal action as necessary. In the first program, we get any money collected. We pay a flat
fee per account submitted regardless of the dollar value. Under the hard ball, we collect 50%. A lot goes to hard ball
only because we work the accounts pretty hard before we turn them over. On another note, once it goes to hard
ball, we write it off our books and forget it. Anything collected goes back into bad debt recovery with a "yahoo". I
have taken several people to small claims but trying to collect afterward can be a pain. I have found it more cost
effective in time and energy to let it go and let someone else handle it. New customers we have never worked with
are supposed to have credit applications on file but that does not always happen.,” he closed
of money owed, coming in at 99.20%. Typically operators reported writing off less than 1% of their entire billing
as uncollectible. It’s important to note that overall best collection averages were reported in larger cities across the
United States and appeared to get worse in more rural areas. For definition of an average we did not include a few
reports of 18% and higher, assuming they were likely to be isolated incidents.
Areas such as Missouri, Mississippi, Louisiana, Arkansas, parts of Oklahoma and parts of Texas had average write
off percentages at about 3%. Coverage running the entire length of the East and West Coast came in at below 1%.
From the responses, we saw little change in the percentage rate from one collection policy to another with the
exception of an escalation of uncollectible money for companies that reported having no defined policy.
Glenn Greeno of Ameri-Can in Illinois reported “Over the last few years, it appears that we can count on about 90-
92% (8-10% uncollectible). The loses are either outright deadbeats or bill disputes particularly about damages (after
all they’re ‘just a toilet’). The biggest losses seem to come from ‘community organizations’ on special events”
concludes Greeno. “Payment up-front will be the words heard this year,” he said.
“As to contractors, when the truck stops coming the checks start coming, and it’s amazing how they don’t even
call...because they do know,” Greeno continued. “If you’re to service a big project for a contractor at a ‘big’
company, like International Paper, don’t assume the best. Ask for references on the contractor, and ask the
office/plant staff where the work is taking place, if there are payment guarantees for subcontractors like yourself.
Don’t make the mistake of being so hungry for business that you can’t ask reasonable questions. All of our lives in
this industry will be improved greatly when we all start walking away from the kind of ‘setups’ for fraud and abuse
that are out there” he said. Greeno concluded, “The Portable Sanitation Association’s Mid-Year meeting is a great
place to learn the ropes, and avoid the traps, from those who have seen/experienced them.”
Veteran operator, Ron Inman of Northwest Cascade, based in Seattle, Washington explains their company reports
less than one tenth of a percent as uncollectible. “We have a very liberal credit policy, pretty much open credit to all
until they have proven we should not extend them credit. We want anyone that is more than 30 days past due to be
contacted and asked if there is a problem” explained Inman. “If they respond and make a promise to pay we will
work with them. If they do not respond or promise to pay and do not follow through we will stop service and/or
pick up the restrooms. In our area, liens don’t usually apply for our services. We can attach the contractor’s bond
and that works for us on the tough ones” he said. “We do not stop service on a unit and leave it out there. We do
not put a note in the unit that we have stopped service and let anyone that goes in the unit to know why it is not
serviced. We have seen this done and believe it is not the right way to go” he closed.
From the other side of the continent, a Northeast operator lays out an unwavering policy that works for them. “We
pick up equipment when the account is 120 days old (advance billing). If internal calls have failed, they are
submitted to a collection agency immediately after the equipment is picked up, for a flat, low fee. If the amount is
more than $300.00, they are submitted to attorney for 1/3 of collected dollars. This process is automatic and
relatively easy to maintain. We sue everyone who owes us $300.00 or more with no exceptions. Still we will purge
1% of sales as uncollectible this year, which are for the most part older judgements, which may pay in the future.
This is up significantly from prior years with the same process. The key is watching the larger accounts closer (60
days), and getting the attorney on all of them, early as possible,” he closed.
Out of Texas and reporting 3%, Julie from K&H Portable Toilets in Brenham explained, “We are allowed to file
‘Theft of Services’ charges with the District Attorney. It is similar to hot check services. You send a certified
return receipt letter with a 10-day demand. Then you file. You do not put liens on the property. You go after the
individual or company directly. This works very well. No one wants their name plastered on the local radio” she
said.
Also from Texas, Robert Elder or PitStop Portable Restrooms based in San Antonio says they have less than 1%.
Outlining their program, Elder explains that each month they monitor who is late giving them a 15-day grace
period. Once the period has expired, the company stops service until payment is received, which he says usually
happens quickly. Elder did note if they are very past due they are sent to a collection agency but also explained
most of those, were prior to implementing the new system.
“We begin by getting good information when they call in their order” says Odell McCoy of Big Oak Septic based in
the mountain community of Coarsegold California. McCoy explains that information gathered includes, “the
homeowners name and current address and phone number, the contractors full name and address, not just a PO
Box, his contractors license number, who in the office do we talk to if there is a billing situation.” If the contractor
falls behind, McCoy says, “If there is no response from the contractor and they fall behind I call the homeowner
and let them know we are not being paid. On rare occasions when we do have to chase customers I use the
mechanic’s lien - and even more rare, Small Claims,” he closed.
Based in Visalia, California, Terry of AAA Services explained, “on bad debt, we have been running about 1% of
total sales. We have one full time collection person to cover the 200+ accounts. She calls anyone over 30 days to
"clarify their payment schedule" or as a "courtesy call." The calling is more aggressive beyond 60 days and we have
been known to interrupt service. That usually prompts calls when we seem to only get answering machines.
Depending on the response of the customer, we will pull units. We try to work with them as much as we can to a
point. Once the department feels they have exhausted all efforts, I use a collection service - Transworld Systems.
We are set up on line such that we submit the accounts via internet. They send nasty letters for 60 days. This
usually prompts about 10% to pay or at least contact us with a plan. The other 90% usually go to a hard ball
agency that will pursue legal action as necessary. In the first program, we get any money collected. We pay a flat
fee per account submitted regardless of the dollar value. Under the hard ball, we collect 50%. A lot goes to hard ball
only because we work the accounts pretty hard before we turn them over. On another note, once it goes to hard
ball, we write it off our books and forget it. Anything collected goes back into bad debt recovery with a "yahoo". I
have taken several people to small claims but trying to collect afterward can be a pain. I have found it more cost
effective in time and energy to let it go and let someone else handle it. New customers we have never worked with
are supposed to have credit applications on file but that does not always happen.,” he closed
The Sanitation Journal is a monthly trade publication that caters to the portable restroom industry. Each month
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
For the most part collecting money for services doesn't seem to bad. Collections has to have a procedure in place
to make it effective. Collection from some can be tough and costly. This article covers some of the details
involved with collecting bad debt. Managing receivables is essential to grow a business
to make it effective. Collection from some can be tough and costly. This article covers some of the details
involved with collecting bad debt. Managing receivables is essential to grow a business
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