Contractor Tips: Solving Cash Flow Issues

a man dressed in a suit and hard hat contemplates solving his cash flow issues while he points to the words "cash flow" in the background

When the money stops, so does the job. Managing cash flow in your contracting business is probably one of the top-tier issues you face each day. What can you do about it? Actually, a lot. We’ve got some tips and strategies for you to manage your cash flow a little better as you grow your contracting business. Here are some tips on solving cash flow issues. 

Cash Flow Management

Sometimes managing cash flow can be as simple as planning ahead just a little. Then other times, it might take some real finagling to stop a huge issue. That’s one thing that makes the contracting business so exciting. Each project is different, and each day holds something interesting… or stressful, depending on how you look at it. But there are ways you can manage cash flow issues

Consider incentivizing your clients to make payments early instead of just on time. Everyone loves a deal, and it can potentially alleviate some of your cash flow problems. Another strategy is to require deposits and payments. Cash flow is serious, so it’s definitely reasonable to be strict on your payment policy. Good clients will understand the need to keep cash flowing in a positive direction.

Cash Flow Maximization 

Once you’ve mastered the art of cash flow management, you can move on to the finer art of cash flow maximization. How can you best ensure that your cash is always coming in, so you can always be producing a premium product? Maximize your cash flow. There are some great innovations on the market today that are designed to streamline your process and subsequently increase your monetary intake. Utilize some of the recently developed software or applications to receive payments more quickly and efficiently. You can spend less time tracking down your payments and more time getting those projects completed. 

Baby that Budget

Another way to manage your cash flow issues lies in your handling of the budget. We encourage you to treat that thing like a brand new baby. Take care of it. Pay attention to it. Follow your budget. There are some strategies you can employ to make sure that staying within your budget is made a little easier.

Consider buying in bulk and keeping some commonly used items on hand. This strategy can also pay off when you have those ridiculous spikes in materials costs. If you bought your most popular paint color in bulk last year, and the price spikes this year, guess who’s already doing better on their budget than everyone else? The budget game IS the long game. Also, consider investing a little more money on the front end for quality equipment. It costs more, but it will typically last longer. Like we said, play the long game.  

Advertising on a Budget

When you’re managing your cash flow, you should consider what comes in and what goes out. We’re talking about clients, cash, and your appearance. There are so many low-cost options when it comes to advertising on a budget. Advertising is both necessary and beneficial to the cash flow game. You can’t generate any cash flow if you aren’t generating a steady flow of new clients. This is why advertising can be so important to your overall cash flow issue. 

For starters, you should utilize every opportunity to get your name and company logo out in front of the eyes of the people. One of the easiest, almost-free ways to advertise is to maintain your social media presence. Keep your account updated regularly with fun and entertaining content. It doesn’t necessarily have to be marketing or advertising content for your business per se. You can post photos of your projects, short tip videos, or things you find funny. Just be sure to respond to comments and encourage people to follow your page. When those followers need someone to do their next home improvement project, they’ll be sure to contact you. 

You can also consider other low cost advertising options like sponsoring a local kid’s sports league, so parents can watch your logo run up and down the soccer field every week. Even a small investment in some t-shirts or coffee mugs for your clients and team members can go a long way for company visibility. 

The Ultimate Cash Flow Remedy

By far the best thing you can do for managing any cash flow issues you may come across is to offer contractor financing for your customers. Cash flow becomes a non-issue when you choose to partner with HFS Financial. It’s tremendously easy, and your clients can get access to all the loan options they could ever need. All the loan options fund completely and fully upfront, so there are no issues with cash flow and no stage funding. You get the cash flow you need, and your client gets the dream home they desire. 

But cash flow isn’t the only reason you should partner with HFS Financial. This is a partnership that will help your business to thrive. Contractor financing can bring in new clients, which will increase your overall cash flow and grow your business. Offering financing for home improvement projects can also set you apart from other contractors in your area and allow those clients who need funding to turn to you to meet that need. 

You may find yourself asking, “Will offering financing really give me a leg up over the competition?” The answer to that is a huge and resounding YES!

So, don’t delay. There are virtually no downsides to partnering with HFS Financial to offer contractor financing to your clients. Start today! It’s an easy partnership. All you need to do is apply through our contractor page, and we’ll get you set up with our 60-second loan application widget for your website. Your clients can click on the widget, which will link them automatically to our HFS Financial team to get them started. Help your clients get the funding they need for their dream project. With HFS Financial, “You Dream It, We Finance It.” 


HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.

Get Financed with HFS!

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