Are You Financing Your Client's Job?

You Didn’t Notice at First—Until the Jobs Got Bigger

Early on, this problem hides.

Projects are small.

The stakes are low.

You float some costs and move on.

But as projects grow, the cracks show fast.

That familiar 30/30/30/10 payment structure that worked on a $40k job starts breaking down on a $150k—or $400k—project.

At that scale, waiting too long between invoices puts real pressure on the business.

That’s when contractors realize something important:

You’re not a bank.

And you can’t afford to act like one.

Financing Projects Keeps You Trapped in the Craftsman Cycle®

When cash gets tight, stress goes up.

And stressed contractors make predictable moves:

• They stop paying themselves
• They delay paying subs
• They rush new estimates just to chase deposits

That’s the Craftsman Cycle®:

Price Work ? Get Work ? Produce Work ? Find Work

You’re busy, but you’re boxed in.

And the root cause is usually poor cash timing—not lack of work.

The Fix: Bill Early. Bill Often. Don’t Be the Bank.

There’s nothing wrong with financing a project if you charge for it.

Banks do this every day.

They lend money and get paid for the risk.

But when you float labor and materials without charging for the delay, you’re giving out interest-free loans.

That stops now.

Rule #1 — Don’t Be the Bank

Start with a deposit that actually does its job.

A good rule of thumb: size the deposit to cover roughly the first month of work.

For example:

• Six-month project
• One month ? 16–17% of the total job

That deposit carries the project through the early stages before the next invoice hits.

Know your state laws.

Charge what’s allowed.

Collect it before work starts.

On commercial projects where deposits aren’t allowed, understand this clearly: You are financing the job.

If that’s the case, the cost of financing needs to be baked into the price.

Rule #2 — Bill Early (But Not for Work You Haven’t Done)

There’s always a lag between:

• Sending the invoice
• Receiving the money

Billing early means preparing invoices based on where the project will be when the client actually writes the check, not just where it sits the day you send it.

That might mean billing a week ahead—not months.

Just enough to stay caught up.

You’re not billing for imaginary work.

You’re accounting for real-world timing.

Miss this step, and cash flow slowly bleeds out.

Rule #3 — Bill Often and Bill on Progress

Large projects don’t like big gaps between payments.

Instead of tying billing to phase completion, tie it to progress.

That might look like:

• Weekly progress billing
• Bi-weekly billing for clients who don’t want to cut checks every week

Same total price.

Smaller, more frequent payments.

Less stress for everyone.

Pro Tip:

Never tie payments to milestones you can’t control.

Inspections, third-party approvals, and outside schedules will burn you.

Instead, anchor payments to:

• The start of work
• Measurable progress you control

Bonus move: pair progress billing with regular on-site or progress meetings so invoices never feel like a surprise.

Why This Changes Everything

When cash is flowing:

• Money conversations get easier
• Decisions get better
• Stress drops

Clients don’t want work to stop.

Neither do you.

Clear payment schedules protect both sides.

When the cash stops, the work stops.

And that’s something no one wants.

Final Thought

You don’t need to be better at talking about money.

You need a billing structure that works.

Don’t be the bank.

Bill early.

Bill often.