Recently switched up my payment terms and noticed a big difference in cash flow. Used to do net 30, now I’m doing 50% upfront and 50% on completion for most projects.
Anyone else experiment with different payment structures? Curious how it’s impacted your business stability.
Yep, payment terms can make or break your cash flow. I’ve tried a few different setups:
The weekly invoicing works well for regular clients. Keeps money coming in steadily.
For new clients, I stick with the upfront + completion split. Gives some security.
Milestone payments are great for those big projects. Helps cover costs as you go.
Main thing is to be clear about your terms from the start. And don’t be afraid to adjust if something’s not working. It’s your business, after all.
Yeah, payment terms can really shake things up. I used to do net 30 for everyone, but cash flow was always tight. Now I do a mix:
For small jobs, it’s 100% upfront. No exceptions.
Medium projects get the 50/50 split you mentioned. Works well.
Big projects, I go with 25% to start, 25% at halfway, 50% on completion.
Made a huge difference. Less stress about chasing payments. Plus, it filters out the not-so-serious clients.
One tip: I put all my terms in a simple contract. Nothing fancy, just clear expectations. Saves a ton of headaches.
Remember, it’s okay to adjust your terms as you grow. What worked for me at the start doesn’t cut it now. Keep tweaking until you find what works for you.
I’ve tried a few things over the years. Right now I do 50% upfront for new clients and bill weekly for regulars. Keeps cash flowing steady.
For bigger jobs, I break it into chunks. Maybe 30% start, 30% midway, 40% at the end. Covers my costs as I go.
Main thing is to stick to your guns. No deposit, no work. Simple as that.
I just bill when I’m done. Never thought about it. Keeps things easy for me.
That’s smart. I’ve been doing 50% upfront and 50% on completion for years. Keeps cash flowing and weeds out flaky clients. For bigger jobs, I break it into thirds: start, midpoint, finish. Helps cover materials and keeps things moving. Main thing is sticking to your terms. Don’t start work without that first payment. And always get it in writing. Saves headaches down the road.