Let’s talk about something that’s so common in construction it rarely gets questioned: Net 30 payment terms.

For most contractors, “Net 30” means you get paid 30 days after you invoice. But let’s be real — in the field, Net 30 often becomes Net 45, Net 60, or worse. And if you’re not getting paid on time, you’re floating the project. You’re covering payroll, fronting material costs, paying subs, and possibly taking draws just to make ends meet — all while your cash is stuck in someone else’s hands.

This is what I call death by delayed dollars. You’re doing the work, delivering results, but you don’t have the cash to show for it.

Now here’s the problem: the longer your receivables sit out there, the more stress and risk you take on. Late payments squeeze your cash flow, choke your ability to take on new jobs, and cause you to delay vendor payments or even miss payroll. It’s not sustainable.

I worked with a specialty contractor who had $180,000 in unpaid invoices. Most were 30 to 90 days old. On paper, he was doing great. In real life, he was making late payroll and maxing out his credit line. Once we got into the numbers, we found he was sending invoices late, not following up consistently, and had zero late fee enforcement.

We fixed it fast: added clear payment terms to contracts, enforced milestone billing (no more “wait until the end”), and offered a 2% discount for payments within 10 days. We also started following up with automated reminders on day 15, 25, and 30. The result? He cut his average collection time from 52 days to 21 — and freed up $75K in 60 days.

The truth is: You’re not in the construction business. You’re in the cash flow business.

If you’re tired of chasing your money, let’s fix your payment system.

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