The unique (and overlooked) way that metal construction supports your cashflow

MCS Influencer Thea Dudley shares how metal can make it easier to forecast your cashflow needs.

Metal contractors can improve their own cashflow, not just sell it better by flipping the lens and focus on how metal’s unique traits can be used to not only sell the projects to customers, but also to shape customers expectations and support healthier financial operations for the companies installing it.

It’s all about how you frame it to your customers. Cashflow is king and the longer it takes to collect your money, the less it is worth and the greater the impact to YOUR ability to meet your obligations. Metal means fewer surprises, so let’s keep the payment plan just as predictable.

A few strategic moves to maximize your ability to control your cashflow: 

1. Negotiate front loaded invoicing tied to fast install times associated with metal. 
2. Use progressive invoicing aligned with metal delivery and installation phases. 
3. Offer early payment incentives to customers to keep that cash flowing. 
4. Track your inventory tightly – metal is expensive, and over ordering can put a chokehold on your cashflow. 
5. Build vendor relationships and leverage them for better payment terms, discounts or other incentives.   

Overall, a little finesse and customer focus makes it easier to forecast your cashflow needs, negotiate better terms with suppliers, provide customers with enticing options and manage multiple projects without the stress of financial hiccups.

About Thea Dudley

Thea Dudley, also known as The Credit Overlord, is a seasoned credit management expert with over 35+ years of experience in the building materials and construction industry having served as VP of financial services for two national distributors. She has led credit teams, improved cash flow processes and trained countless credit managers and sales reps. Thea is a passionate advocate for the credit profession and a frequent speaker at industry events. She is a frequent contributor to many industry publications including her popular credit advice column in LBM Journal.