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A Constant Stream of Helpful Content on Getting Paid in Construction
Why Expectation Management is Key in Construction
When you’re on the job, it’s easy to forget that you’re building for someone, maybe even several people. Like any other business, there’s a customer and seller involved in every transaction. While you may not be directly responsible for the sale of a property or project, you are still beholden to the customer. That’s precisely […]
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How Fast Should In-house Trade Credit Approvals Be?
Trade credit is one of the most popular financing options in the construction industry. When construction clients use trade credit, they can buy materials and services without having to pay upfront. They instead pay at a later date depending on the payment terms agreed upon by the parties involved. Using trade credit is convenient, so […]
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How to Improve Communication Skills for Effective Construction Debt Collection
Communication skills are key to running a successful construction company, or any business for that matter. In construction, specifically, payment delays and disputes often arise due to poor communication among the stakeholders. Being a good communicator is also extremely important in collecting payments from clients. Without proper communication skills, you may suffer through regular delays […]
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9 Qualities of Effective Credit Managers in Construction
In a lot of ways, the construction industry is distinct. Every single project is different, and roles and responsibilities change depending on the contract you sign. Construction parties also have a legal remedy for payment recovery – no other industry allows its participants to file a mechanics lien to pursue payment from delinquent clients. Construction […]
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Dos and Don’ts of Extending Trade Credit to Construction Clients
Trade credit is one of the most popular transactions in construction. When a construction company extends trade credit, they provide services such as labor and materials before they get paid. Payment is only exchanged after services have been furnished and invoices have been sent. Because trade credit is quite common in construction, it may seem […]
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How to Build a Strong Credit Department for Construction Material Suppliers
Construction businesses usually start small. As a company grows bigger, some tasks and processes become more complicated than normal. One such task is payment collection. In a small- to mid-sized company, one or two people can be sufficient enough to collect payments from clients. In bigger companies, there is usually a dedicated team that manages […]
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Cash Flow Forecasting in Construction: How to and Best Practices
Construction companies need a steady flow of income to ensure that their projects and day-to-day operations are properly funded. If the inflow of cash becomes negative – that is, the money coming in is less than the money going out – it can pose serious problems to a company’s financial and overall health. Maintaining a […]
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Are Late Payment Penalties a Good Idea in Construction?
Late payments are one of the most common problems in the construction industry. It doesn’t matter how diligent you are in completing your tasks or how efficient you are in sending out your invoices – there will always be clients who will struggle to pay on time. One way to curb the problem of late […]
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How Construction Site Efficiency Can Reduce Late Payments
Timeliness is a pervasive issue in the construction industry. Projects frequently run over schedule, and even after completion, payments typically take far longer than they should. These delays can take a toll on smaller, independent contractors’ finances. A 2019 survey revealed that 43% of American subcontractors wait between 30 and 60 days for payment. Another […]
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7 Important Accounts Receivable KPIs for Construction Collections Departments
Construction companies need to evaluate their processes in order for them to understand what’s working and what isn’t. If, for instance, you are consistently struggling to maintain your cash flow due to frequent late payments, there may be something amiss in your collections processes or your credit policies. Knowing which areas need improvement and which […]
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