The deposit is 20%. Two thirds of the cost lands in month one.

Most payment schedules were inherited from someone else's business, and they quietly decide how much cash a growing project firm needs to hold.

By Steve 5 min read
Abstract bridge artwork for The deposit is 20%. Two thirds of the cost lands in month one.

A project business can be profitable on every job it takes and still spend the year staring at its bank balance. The usual explanation is that customers pay late. Often the more interesting explanation is that the payment schedule was never designed against the shape of the work. A deposit of 20 per cent, a stage payment at the halfway point and the balance on completion is a perfectly reasonable structure. It is also a structure that most firms adopted because it was what the last employer did, or what…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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