Are You Letting Old Invoices Age Like Bad Cheese? Aging Receivables Are a Cash Flow Killer
You’ve done the work. You’ve sent the invoice. And now you’re waiting… and waiting…
When clients delay payment, you become the bank — but with no interest, no collateral, and no control. Aged receivables don’t just hurt your cash flow — they increase your risk and cost you money.
The longer an invoice sits, the lower the chance of collection. After 90 days, most contractors collect only a fraction of the original balance.
Real World Mistake & Lesson: A plumbing contractor had over $120,000 sitting in 60- to 90-day aging. Some of it was “good as paid,” but a lot was stuck in limbo — missing COs, poor documentation, or just client foot-dragging. Once we cleaned up the A/R process, added auto-reminders, and made follow-up someone’s job, average payment days dropped from 58 to 29. That’s like getting a 6-figure line of credit without a bank.
Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”. Go to www.7MinuteConversationBook.com
Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com