You finished the job. The customer said they loved it. And now it's been three weeks and you still don't have a check.
Sound familiar? Yeah. Every contractor has been there.
Getting paid shouldn't be the hardest part of the job, but for a lot of guys it is. You're out there buying materials on your own dime, paying your crew, burning gas — and then you have to go play collections agent on top of it.
I'm not going to tell you to "implement a robust accounts receivable system." I'm going to tell you what actually works, based on what real contractors do to keep cash moving.
The real problem isn't bad customers
Most people aren't trying to stiff you. The real problem is usually one of these:
- You didn't set clear payment terms before the job started
- You made it hard for them to pay (cash or check only, no invoice sent)
- There's no consequence for paying late
Fix those and you'll fix 90% of your payment headaches.
Set the terms before you pick up a brush
This is where most guys mess up. You talk about the scope, the color, the timeline — but you mumble through the payment part or skip it entirely.
Your estimate or contract should spell out:
- How much the deposit is (I'd say 30-50% for most jobs)
- When progress payments are due (for bigger jobs)
- When final payment is due (on completion, not "whenever you get around to it")
- What forms of payment you accept
- What happens if they pay late
Get this in writing. Not a text message. An actual estimate or contract they sign. It doesn't need to be fancy. A one-page document works fine.
When customers know the terms upfront, they almost never push back. It's when you surprise them at the end that things get weird.
Take deposits. Every single time.
If a customer won't put down a deposit, that tells you something. Walk away.
A deposit does two things. It gives you cash to cover materials so you're not floating everything. And it makes the customer invested in the project. People who put money down don't ghost you.
For jobs under $2,000, I'd get 50% upfront. For bigger jobs, 30-40% upfront with a progress payment at the halfway point. Final payment on completion.
Some states have laws about deposit limits for contractors, so check your local rules. But in most places, 50% is totally fine.
Make it stupid easy to pay you
If the only way someone can pay you is to write a check and mail it, you're going to wait. People don't carry checkbooks anymore. Half of them don't even have stamps.
Here's what you should accept at a minimum:
- Credit/debit cards (Square, Stripe, or whatever you like)
- Venmo or Zelle
- Online invoice payment (most estimating apps have this built in)
Yes, card processing fees eat into your margin. About 2.5-3%. But getting paid today is worth more than getting paid maybe-next-week. Build the fee into your price if it bugs you.
When you send an invoice, include a "Pay Now" button or link. One tap. Done. The easier you make it, the faster the money shows up.
Send the invoice the same day you finish
Don't wait until Friday to send invoices for the week. Don't wait until you "get around to it." Send the invoice the day you finish the job. Ideally within an hour.
Why? Because right after you finish is when the customer is happiest. The rooms look amazing. The fence is straight. Everything is fresh. That's when they're most willing to pay without a second thought.
Wait a week and they've already moved on mentally. They're thinking about their electric bill and their kid's soccer fees. Your invoice becomes one more thing on the pile.
Same-day invoicing also makes you look professional. It says "I run a real business" without you having to say it.
The follow-up system that works
Even with all of this, some people are slow. Here's a simple follow-up schedule:
Day 1 (job complete): Send invoice with a friendly note. "Thanks for the project, here's the final invoice. Payment due within 7 days."
Day 7: If unpaid, send a reminder. Keep it light. "Hey, just a friendly reminder that invoice #123 is due. Let me know if you have any questions."
Day 14: Second reminder, slightly more direct. "Following up on the outstanding balance of $X. Please let me know when I can expect payment."
Day 21: Phone call. Not a text. An actual call. "Hey, I wanted to check in about the balance on your project. Is everything okay?"
After 30 days unpaid, you have to decide if it's worth pursuing further. For small amounts, sometimes it's not. For larger balances, a demand letter from a lawyer (usually $100-200) gets results fast.
The point is: have a system. Don't just hope they pay. Follow up consistently and most people will pay before you even get to step two.
Put a late fee in your contract
This one is simple but effective. Add a line to your contract that says something like: "Payments received more than 14 days after the due date are subject to a 1.5% monthly late fee."
You don't even have to enforce it every time. Just having it there makes people pay faster. Nobody wants to see a late fee on their bill.
Check your state laws on maximum late fee percentages. Most states allow 1-2% per month.
The deposit-final payment structure for big jobs
For jobs over $5,000, here's a structure that keeps your cash flow healthy:
- 30% deposit before you start
- 30% at the halfway mark (or when materials are on-site)
- 40% on completion
This way you're never more than 40% exposed. If a customer disappears after the halfway payment, you've at least covered your costs. And the progress payment is a natural check-in point where you can address any concerns before finishing.
For really big jobs ($20k+), break it into more milestones. Maybe four or five payments. The idea is the same: never get too far ahead of what you've collected.
When customers try to negotiate after the job
This is the worst one. They agreed to $3,500, you did the work, and now they want to pay $2,800 because they "didn't think it would be that much" or they found some tiny flaw.
If your contract is solid, you're protected. Point to the signed agreement. Be polite but firm. "I understand, but we agreed on this price before I started. The work was completed as discussed."
If there's a legitimate complaint, fix the issue and then expect full payment. Don't discount your price because someone is trying to squeeze you. Word gets around when a contractor caves on price — and not in a good way.
A word about lien rights
In most states, contractors have the right to file a mechanic's lien against a property if they don't get paid for work they performed. This is your nuclear option, and you probably won't need it often, but know your rights.
The rules vary by state. Some require you to send a preliminary notice before starting work. Some have strict filing deadlines (usually 60-90 days after completion). Look up your state's lien laws or talk to a local attorney.
Just mentioning that you have lien rights — politely — can motivate a slow payer. "I really don't want to have to go the formal route here" goes a long way.
Quick cash flow tips
- Keep a separate business account. Don't mix personal and business money.
- Track every invoice and its status. A spreadsheet works. An app works better.
- Bill for materials separately if the customer is buying them. Don't float material costs for weeks.
- If you're consistently waiting 30+ days for payment, raise your deposit percentage.
- Consider offering a small discount (2-3%) for payment within 48 hours. Some customers jump on this.