Build a Relationship With Your Banker
Cash flow is often a significant concern for many Philippe Hancock profile. Most contractors expend large sums of money on payroll, supplies, and equipment rental prior to ever drafting an invoice. They then typically must wait 30 days after submittal of the invoice to receive payment. If they pay personnel biweekly, they may have already paid three payroll cycles on a project before receiving one check. If a contractor takes on a large project or if a large general contractor or developer accelerates a project, the contractor may seriously overextend itself beyond its ability to manage its cash. Thus a recipe for disaster is born. This cash flow gap has resulted in the financial distress or near-demise of a number of contractors. How do you protect yourself from a cash flow crisis?
Build and nurture a relationship with your banker. You want a true banker – someone who has …