You’ve been in the construction industry for many years, working your way up from the ground until you were able to form your own company and become your own boss.
Setting up your own business has many benefits, such as being able to choose your own projects, team members and business partners. That being said, it isn’t all plain sailing. You are reliant on your clients paying for the work that you carry out. How can you encourage customers to pay on time?
Require partial payment in advance
For most construction projects, you have to order the materials, which costs you. If you order these materials and the client decides not to follow through, then you are stuck with out-of-pocket losses.
One thing you may want to consider is asking for at least a partial payment upfront, with the rest being paid upon completion. This way you do not risk operating at a loss should the client fail to pay. Plus, the initial financial commitment discourages people from taking advantage of your trust.
Offer installment payment options
Offering installment payments can also make it easier to get paid. If you write terms in your contracts that require your clients to make periodic payments as construction moves along, that can help them budget – and make it easier to keep your own books on track. Offering convenient methods of payment, like electronic billing that doesn’t require a check, may also help you get those payments to roll in on time.
If you have watertight legal agreements with clients then this also increases your chances of prompt payments. Having experienced guidance on your side will help you to take the appropriate steps.