Work tends to slow down unexpectedly, and that’s when everything starts piling up. I thought I had a handle on things until late payments from clients popped up just when I needed cash.
Had a real moment last month with three overdue invoices and silence on new projects. It’s clear I need a solid plan for these downturns.
Half payment upfront saves me from chasing people later. No exceptions on that rule anymore.
I just send invoices right when the job’s done now
Chase payments early. When you’re swamped with work, invoices get forgotten. Stay on top of collections.
I send payment reminders right when I invoice. Then I follow up weekly after the due date - no exceptions.
Diversify your clients too. Banking on a few big jobs is risky. Smaller projects from different clients spread that risk out.
Been there. I keep a cash buffer for these times - 2-3 months of expenses saved from good months.
For overdue invoices, I call after 15 days instead of waiting. Email’s easy to ignore but a friendly call usually gets things moving. Most clients aren’t trying to stiff you, they just forgot.
I switched to net 15 instead of net 30. Sounds small but helps cash flow when things get tight. Plus I ask for 25% upfront on bigger projects now.
One thing that saved me was tracking which clients pay on time versus which ones always drag it out. Slow payers get shorter terms or upfront payments. Good ones get more flexibility because they’ve earned it.
When work slows down, I follow up on outstanding invoices. It’s productive and keeps money coming in even when new projects aren’t starting.
Overdue invoices during slow periods are brutal. I treat collections like billable work now.
What keeps me going:
During slow periods I’m:
Slow periods end but cash flow problems kill you first. I keep a list of past clients for small projects when big stuff dries up. Those little jobs bridge the gaps.
Cut net terms entirely if possible. I went payment on delivery years back - fixed most cash flow issues. Yeah, some clients complain, but the ones who actually pay are the keepers. For overdue accounts, I hit them with late fees after 10 days. Most contractors don’t bother, but it works. Keep a basic spreadsheet tracking who owes what and when. Check it Monday mornings and make your calls.