Stopped by the hardware store and saw a sign that changed my payment terms

They had a new policy posted at the register: 'All contractor accounts must be settled weekly, or materials stop.' It made me realize I should be that clear with my own customers. Anyone else put a firm payment schedule right in their initial quote?

3 comments

3 Comments

the_hayden1d ago

My buddy learned the hard way after a kitchen reno dragged on for three months with zero payments. Now his quotes break the total into four clear parts, like 25% to start, another 25% after demo, and so on. It turns one big scary number into smaller, regular bills that clients seem to handle way better. That "due on completion" rule beng51 mentioned is solid, but for longer jobs, breaking it up stops you from becoming the world's worst bank. It also lets you spot a payment problem early, before you're in way too deep.

hannah_craig1d ago

Totally get where your buddy is coming from. That sounds like a brutal three months of work with no cash coming in. Breaking the total into chunks based on clear milestones is such a smart fix. It keeps the client from getting sticker shock and protects the contractor from carrying all the cost. Spotting a payment issue after the first phase is way better than finding out at the very end. It just seems like a more fair way to run a longer project for everyone involved.

beng511d ago

Yeah, that's smart. I've started putting "payment due upon completion" right at the top of my estimates, no wiggle room. It saves so many awkward conversations later.