Lately, I’ve been struggling with cash flow in my handyman business. Clients are taking forever to pay, and it’s messing with my finances.
I’m wondering if there’s a better way to structure my invoices or payment terms to encourage faster payments. Anyone else deal with this in the trades?
I just ask for cash when I’m done. No fuss, no waiting. Works for me most of the time. If they can’t pay right away, I don’t do the work. Simple as that.
I don’t bother with invoices. Just ask for cash when I finish. No cash no work. Keep it simple.
Been there, done that. Cash flow issues can really mess with your business.
Here’s what worked for me:
Shorter payment terms. I switched from 30 days to 14 days. Most clients adjusted without issue.
Deposits for bigger jobs. I ask for 30-50% upfront for anything over $500. It covers materials and some labor.
Clear, simple invoices. I list exactly what was done, when, and for how long. No confusion means fewer excuses for late payment.
Follow-up system. I send a friendly reminder a few days before the due date. Works wonders.
Incentives for quick payment. I offer a small discount (like 5%) for same-day or within 3-days payment. Some clients love this.
Easy payment options. I use Square for card payments and Zelle for quick bank transfers. The easier it is, the faster they pay.
It took some trial and error, but these changes really sped up my cash flow. Hope this helps!
I’ve tweaked my invoice system over time. Here’s what’s working for me:
Upfront deposits. I ask for 25-50% before starting, depending on the job size.
Progress payments. For longer jobs, I bill weekly or at key milestones.
Same-day invoicing. I send the invoice right when I finish the job, while it’s fresh in their mind.
Payment options. I use Venmo, PayPal, and good old checks. More options = faster payments.
Late fees. I add a 5% fee for payments over 14 days late. It’s in my contract, so clients know upfront.
The key is being clear about expectations from the start. Most clients are cool with it once they understand.
Also, don’t be afraid to stop work if someone’s not paying. Your time is valuable, and you’re not a bank.
I’ve found that setting clear expectations upfront works wonders. I always discuss payment terms before starting a job.
For smaller jobs, I ask for payment right after completion. For bigger projects, I break it into milestones with partial payments.
If someone’s consistently late, I might start requiring a deposit. It’s all about finding what works for you and your clients.
Here’s what I do:
Get a deposit upfront. 50% for big jobs, 100% for small ones under $200.
Invoice right when the job’s done. Don’t wait.
Keep payment simple. Cash, check, or quick transfer apps like Venmo.
Set short payment terms. 7 days max.
Follow up fast on late payments. Call after 3 days.
Stop work if they don’t pay. Your time’s worth money.
Don’t overcomplicate it. Clear terms, quick invoicing, and stay on top of it. That’s how you keep cash flowing.