CHICAGO — Many building service contractors (BSCs) report having cash flow problems; by the time they pay their workers, they can barely make ends meet until their customers start sending in their checks, according to a press release.
A likely reason for this is because many BSCs bill their customers at the end of each month, and the problem with this is that the client may not pay for another 30 days, the release stated.
This means the BSC has cleaned the client''s offices, paid his workers and purchased supplies, but it may take 60 days or more before receiving a check from the customer, the release noted.
This month''s Tornado Business of the Business Advisory focuses on speeding up customer payments, and according to Jolynn Kennedy, marketing director for Tornado Industries, BSCs should bill earlier in the month, around the 10th of the month, for services rendered, the release added.
According to the release, some tips for BSCs to get paid faster include:
• Make sure the month of service is clearly noted on the bill
• Always add payment terms on the invoice as to when you expect to get paid, such as "NET 30" (due in 30 days)
• Make sure the invoice is clearly marked "invoice" or "bill," is dated, and has a "bill to" section clearly listing the customer''s name.
For more tips, click here.
Click here to read the complete release.