Even if you bill according to the contract, and your customer has the money, and executes all the necessary approvals, you may still not get paid as fast as you want. Try offering a 3% discount if paid in full within 10 days without retention. You can make special deals like faster completion or reduced prices in exchange for better payment terms. Some contractors specify no retention, payments every seven days, payments in advance, a 5% penalty if not paid within 10 days, or payment up front for materials. You can also charge interest or late fees for slow pay if agreed to in your contract.
You Are In Business To Make A Profit
It is impossible to build a business without getting paid. When you don't get paid on-time, doing good work won't keep your doors open. Train your customers by insisting on prompt payment. Do more than design, bid, build & bill. COLLECT!
George Hedley is a professional business coach, popular speaker and best-selling author of "Get Your Business to Work!" "The Business Success Blueprint For Contractors" available at his online bookstore. He works with business owners to build profitable growing companies. E-mail: firstname.lastname@example.org to request your free copy of "Winning Ways To Win More Work!" or sign up for his free monthly e-newsletter. To hire George to speak, be part of his ongoing BIZCOACH program, or join one of his ongoing Roundtable Peer Groups, call 800-851-8553 or visit www.HardhatPresentations.com.