Progress Payments: An Easy and Effective Change to Make!

This is pretty simple and subtle change that has flown through one of my Remodelers Circle Mastermind Groups. A couple meetings ago one member was asking the others how they do their payment draw schedule.

And there was something talked about that was a small and subtle difference that one member in the group did that the others didn’t.

BEFORE – EXAMPLE PAYMENT SCHEDULE

  • 25% Down
  • 25% after Framing
  • 25% after Drywall
  • 15% after Trim
  • 5% after Substantial Completion
  • 5% after Final Walk Through

AFTER – EXAMPLE PAYMENT SCHEDULE

  • 25% Down
  • 25% at start of Framing
  • 25% at start of Drywall
  • 15% at start of Trim
  • 5% at Substantial Completion
  • 5% at Final Walk Through

Do you see the difference? Instead of AFTER it’s AT THE START.

A little tweak. Clients don’t bat an eye about it. But as members of this group have been implementing this – it’s made a huge, huge difference in cash flow, in being able to determine when to send out an invoice for a draw check.

At this last meeting – one of the members was raving about what a difference this has made for them and a few other members chimed in and agreed.

This is a simple shift that has made a big impact on cash flow – and something I wanted you all to consider as well.

How are you doing your draws? Have you considered how a tweak/change to them could help you improve your cash flow?