You probably already know that late-paying clients are a pain in the neck. But what you might not realize is how much they’re actually costing you — not just in cash, but in momentum, morale, and opportunity.

Every day a customer drags their feet on payment, your business bleeds. You float materials. You delay payroll. You postpone equipment repairs. And the worst part? You hesitate to take on new work because your working capital is locked up.

One client — a GC — had a few “friendly” customers who always promised the check was in the mail. Problem is, 60 days later, he was dipping into his line of credit to make payroll. After we ran his AR aging report, we discovered over $100K in unpaid invoices sitting past 45 days. That’s real cash that could’ve gone into growth — or into his own pocket.

Real World Mistake & Lesson: Once we implemented stricter payment terms, upfront deposits, and weekly AR follow-ups, things turned around. Collections sped up, cash flow stabilized, and the stress level dropped. He didn’t need more sales — he needed better collections.

The lesson? If you don’t train your clients to pay on time, you’ll always be the one taking the hit.

 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