Invoicing & Payment

Card payments and what they cost you

A contractor’s total card-processing cost can include more than the advertised transaction rate. Work out your real effective rate, then decide whether to absorb it, price it in, or pass it on.

When a customer will not pay

Contractor collections on an unpaid invoice: the final demand letter, what a collection agency costs, small claims court, and the lien deadline you can miss.

Deposits and down payments

Deciding whether to take a contractor deposit before work starts, how to size it to your real material exposure, and how to invoice and credit it.

Offering customer financing

How contractor customer financing works: the homeowner repays a lender over time, while your funding follows the dealer agreement and may be reduced by a fee.

Getting paid on commercial work

How getting paid on commercial construction works: the owner-to-GC-to-sub payment chain, pay applications, the paperwork that gates your first check.

How to write a contractor invoice

How to write a contractor invoice: the fields a U.S. contractor invoice needs, how to itemize labor and materials, and the gaps that delay payment.

How to number invoices and keep supporting records

Build an invoice numbering system that still works in year five: sequential, date-based and job-based schemes, gaps and duplicates, and what to keep with each invoice.

Invoice or estimate: which comes when

Invoice vs estimate: an estimate proposes a price before work, an invoice demands payment during or after it. Where each one lands in a real job.

How to write contractor late-payment terms

Compare flat and percentage late fees, write the calculation clearly, and check which terms your project state permits before using them.

When an invoice goes past due

A day-by-day follow-up sequence for a customer not paying an invoice: when to send the first nudge, what to say on the call, and when patience stops working.

Lien waivers, in plain English

A lien waiver explained in plain English: the four common forms, what belongs in the amount and date fields, and why you never sign unconditional on a promise.

Net 30, and whether you can afford it

Net 30 payment terms tie up cash you already spent on materials and payroll. How to size the gap, and what to do if your business cannot carry it.

Partial payments and payment plans

How a contractor payment plan works when you carry it yourself: sizing what you can afford to float, the written schedule, and the interest question.

How to choose contractor payment terms

Contractor payment terms compared: due on receipt, Net 15, Net 30, deposits and milestones, and how to pick the one that fits each job and customer.

Progress billing on longer jobs

How progress billing works on a construction job: choosing milestones, sizing each draw, and planning for costs and actual payment dates instead of one invoice at the end.

Retainage: what is held back and when it is released

How retainage works in construction: what gets withheld from each progress payment, what it costs a sub across a long job, and what it takes to get released.

How to record and deposit cash payments

How to handle a contractor cash payment cleanly: a receipt every time, a cash log, regular deposits, and how to compare a cash discount with the card fees it saves.