Melanie Hodgdon for our sister site the Journal of Light Construction, writes on how you can continue good cash flow to your business. An unhealthy cash flow will result in you having to delay payments and ending up having to pay interest on cash. Hodgdon gives ten pieces of advice on how to maintain healthy cash flow.
Here are the top five pieces of advice:
- Get an initial payment at contract signing
- Base milestones on the start, rather than the competition, of a task
- Get payment for change orders at times of signing
- Avoid subsidizing T&M jobs
- Work with big-ticket vendors (such as insurance companies) to position your payments away from the large payments.
To read more JLC Online, by clicking the link below.