Cash flow is the lifeblood of a contracting business. You can be fully booked and still struggle financially if clients are slow to pay. Here are 7 proven strategies to get paid faster on every job.
1. Invoice Immediately After the Job
The single biggest factor in how fast you get paid is how fast you invoice. Contractors who invoice from the job site get paid 2-3x faster than those who invoice at the end of the week. With MyToolbelt, you can send a professional invoice before you leave the driveway.
2. Require a Deposit
For any job over $500, require a 30-50% deposit before you start. This filters out non-serious clients, covers your material costs, and psychologically commits the client to paying the balance.
3. Set Clear Payment Terms
Your invoice should clearly state when payment is due. "Due on receipt" is the strongest option. "Net 30" means you're giving clients a month to pay — don't do this unless you have to.
4. Accept Multiple Payment Methods
The easier it is to pay you, the faster you'll get paid. Accept cash, check, Venmo, Zelle, and credit card. Yes, credit card fees eat into your margin — but getting paid immediately is worth 2-3%.
5. Send a Payment Reminder
If an invoice is 3 days past due, send a polite reminder. Most late payments are not intentional — the client just forgot. A simple "Hi [Name], just a friendly reminder that invoice #123 for $450 is due. You can pay here: [link]" works perfectly.
6. Charge a Late Fee
Include a late fee clause in your invoices: "A 1.5% monthly late fee will be applied to invoices unpaid after 30 days." Most clients will never trigger it, but it signals that you take payment seriously.
7. Build Relationships With Good Payers
Track which clients pay on time and which ones are slow. Prioritize the good payers, give them the best service, and gradually phase out the chronic late payers.