Five habits that keep cash moving in a project business
Cash pressure is a reality for almost every contractor and integrator in the region right now. Long payment cycles, and stakeholders who still expect to be paid on time, squeeze free cash flow hard. Over the years, five habits have made the biggest difference in helping projects fund themselves.
1. Give every project its own cash flow
Company-level numbers hide the projects that are draining you. When each project carries its own view of cash in and cash out, the problem projects show up early, while there is still time to fix them.
2. Run a rolling 13-week forecast
Weekly visibility gives you time to act, not just react. A 13-week view is close enough to be accurate and long enough to see a squeeze coming before it arrives.
3. Invoice on the day a milestone is hit
Every day of delay is a day you are funding the client. The invoice is the last step of delivering the milestone, not an administrative task that follows it.
4. Negotiate payment terms as hard as price
A fair advance often protects you more than an extra point of margin. Terms decide how much of your own money the project consumes, so they deserve the same attention at the table as price.
5. Make collections a shared job
Sales, projects and finance all own the cash, not just accounts. When every team knows the milestones and the terms, collections stop being a chase at the end and become part of how the work is run.
None of these habits is complicated. The hard part is doing them every single week, with every stakeholder, at every level, doing their part like clockwork.