Managing Payments and Cash Flow: Real Talk for Contractors
ADDWORK NOT WORRIES w Ken Sunzeri
Release Date: 11/04/2024
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info_outlineDiscover strategies to overcome the cash flow challenges contractors face daily. In this episode, we dive deep into the financial balancing act of managing payables and receivables, especially when dealing with multiple vendors. From handling demanding subcontractors like “Kevin” to navigating late payments from clients, you’ll learn practical steps to keep your projects moving smoothly.
Timestamps:
0:00 Intro: Cash Flow Wisdom for Contractors
0:21 Understanding Contractor Payables & Receivables
1:08 Complexity in Managing Multiple Vendors
3:08 High-Cost vs. Low-Cost Subcontractors: Trade-Offs
6:04 Why Communication with Clients Matters
7:08 “Kevin” & Other Small Contractors: Cash Flow Tips
11:10 Dealing with Long Delays in Payments
12:31 How to Prioritize Payments for Efficiency
13:00 Final Tips on Managing Cash Flow
Key Takeaways:
- Understand Your Subcontractors’ Needs: High-cost, well-organized subs may keep things efficient, but budget-conscious options like “Kevin” require fast payments to stay productive.
- Prioritize Payments Strategically: Some vendors demand payment immediately; knowing who to pay first can prevent project delays.
- Communicate with Clients: Properly setting payment expectations can reduce friction and maintain good relationships.
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