How contractors get paid faster: 8 habits
Late payment is a cash flow problem you can mostly fix with process. These habits work for any trade.
- Take a deposit. Money in before the work starts filters out tire-kickers and covers materials.
- Invoice the same day. An invoice sent while the job is fresh gets paid sooner than one sent at month end.
- Put a pay link on the invoice. Every extra step, such as finding a checkbook or an address, adds days.
- State terms in plain words. Say when payment is due and what a late payment costs, before the job begins.
- Send reminders on a schedule. A polite note before the due date and another right after catches most late payers.
- Get sign-off at the end of the visit. A photo and a signature on completion remove most disputes.
- Collect progress payments on big jobs. Tie payments to milestones so you never fund a whole project yourself.
- Know your lien deadlines. If payment stalls on a larger job, deadlines to protect your rights can be short. See the lien guides.
Common questions
What is the fastest way for a contractor to get paid?
Invoice on the spot with a pay link, so the customer can pay from their phone before you leave the driveway.
When should I send a reminder?
A few days before the due date and again the day after it is missed.
See the state lien deadline guides and the lien deadline finder.
General information, not legal or financial advice. Verify with your attorney or accountant.
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