Business
Contractor cash flow: the gap between invoice and payment
Contractors live on net terms — invoice today, get paid in 30 or 60 days. The gap between work done and money landed is where contractor cash flow dies. A dated forecast puts every invoice on its expected date and shows the gaps before they bite.
- Net terms dated
Each invoice appears on its expected payment date, per client's real timing.
- Gap months flagged
See the months with more out than in while there is still time to act.
- Retainers project
Recurring client payments keep the forecast current automatically.
- Free core
The forecast and calendar are free forever.
The buffer rule for contractors
Maintain a buffer equal to two months of operating costs — it absorbs late payments, slow net terms, and the month the invoice pipeline thins. The calendar shows the buffer in real time: rising after payments, draining in gaps, and the trigger point if it gets low.
Cash flow levers
- Request deposits: 30–50% upfront on larger projects
- Shorten terms where clients allow: Net 15 instead of Net 30
- Chase at day 30 — the projection makes the cost of lateness visible
- Spread large bills across the gap months
Frequently asked questions
What is contractor cash flow?
The timing of money in and out for contract work — dominated by invoice dates and net payment terms.
How much buffer should a contractor keep?
At least two months of operating costs, given late payments and net terms.
Is it free?
Yes — the forecast and calendar are free forever.
The gap, measured and managed
Free core, one-time Pro, no bank linking.