Progress Payments: Keeping a Positive Cash Flow
We used to get three payments on jobs. 1/3, 1/3, 1/3. That’s not a smart business practice.
We used to get three payments on jobs. 1/3, 1/3, 1/3. That’s not a smart business practice.
It's easy to ask someone to do something; it's harder to hand over money. Your client isn't committed until they've written the first check.
A good payment schedule keeps you paid for the work you are doing. If you're using a 1/3, 1/3 and 1/3 schedule, you are financing most of the job out of your pocket.
If you want positive cash flow in your construction business, make sure you're using the right payment schedule on your contracts.
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