Your vendors can be partners — or they can be a source of major cash pressure.

When you pay your suppliers faster than you get paid by your customers, you become the bank. And if your terms aren’t aligned, you’re always chasing your tail.

Many contractors don’t realize they can negotiate vendor terms, just like they negotiate pricing. You don’t have to settle for Net 15 if your clients pay you Net 30 or Net 45.

In fact, a mismatch in payment terms is one of the biggest cash flow killers in construction — and one of the easiest to fix.

I worked with a contractor who had great pricing from a key supplier — but was stuck on Net 15 terms. Meanwhile, his customers paid him Net 45. He was floating $50K a month just to keep materials coming in. We called the vendor, explained the project flow, and got his terms extended to Net 45 with no penalty. It was a 10-minute conversation that freed up $100K in working capital over two months.

Most suppliers would rather extend terms than lose a good client. But you have to ask.

If vendor terms are draining your cash, let’s fix it.

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