Forum Discussion

Bruce_Shields1's avatar
Bruce_Shields1
Contributor 2
3 months ago

Receivables conundrum

Hello Fellow business owners. I have run a successful Cosmetic Restoration Company for almost 3 1/2 years. I am strictly BtoB and never deal with home owners directly.  Generated jobs has really never been an issue. Getting paid for them in a timely fashion has been. It quickly becomes a cash flow issue , namely employees and the government always want there money up front , with my client payments lagging. I am interested in the strategies that this group uses to get paid quicker without causing conflict that may jeopardize client relations  

accounts receivable
getting paid
  • SlabScience's avatar
    SlabScience
    Contributor 2
    3 months ago

    The best way to get timely payments is to take cash/check/credit card on delivery.  Maybe tell me more about how you currently bill clients?

  • KellyGuerrero's avatar
    KellyGuerrero
    Contributor 4
    3 months ago

    I can definitely relate to the challenges of balancing Cash Flow in a B2B-focused business.  We've run into similar issues in our landscaping business when dealing with delayed payments, and I'd love to share some strategies that worked for us. 

    Have you considered requiring a deposit upfront to help offset cost, especially for materials or initial labor? It's also worth exploring a line of credit or credit card to help bridge the gap while waiting for client payments to come through.  

    Another game-changer for us has been implementing a late fee policy - this encourages timely payments without jeopardizing client relationships.  Additionally, we proactively encourage clients to pay via ACH or Card and have even started collecting cards on file for recurring charges.  These steps have significantly improved our Cash Flow and reduced delays. 

    There will always be a few stragglers, but with clear communication and systems in place, it's much easier to manage.  I'd love to hear what others in the group are doing to handle this common issue-let's share strategies that work! 

  • Paul_Maskill's avatar
    Paul_Maskill
    Contributor 2
    3 months ago

    I know it's probably not what you want to hear but stop chasing the top line revenue at the expense of your cash flow. That type of business model isn't sustainable and leads to never-ending burnout and stress. Only do business with customers who can follow through on your required payment terms. It's okay to extend them terms but anything over 30 days is a death trap. If you're good at what you do, there will be enough businesses that will want to do business with you on your terms. Let them know you're a contractor, not a bank.