Cash Flow

Structure payments so the job funds itself.

Deposits and progress billing aren’t pushy. They’re how every professional trade keeps cash ahead of cost.

Default residential

30 / 40 / 30. Three checkpoints.

01
30% deposit at signing
Funds materials and crew startup. Cleared before the truck moves.
02
40% at midpoint or first day on site
Covers labor through the bulk of the job. Keeps you cash-positive as work progresses.
03
30% on completion before walk-away
Final balance closes out the job. No invoice float, no chasing.

Default commercial

15% deposit. Net 30 with 10% retention.

Commercial accounting often won’t accept large deposits, so 15% is the realistic ask. Net 30 with 10% retention on completion is the industry norm, worth pushing back on for smaller jobs where retention adds nothing but delay.

The cash impact

$24,000 patio job. Paid on completion vs 30 / 40 / 30.

Paid on completion: $0 in, $14,000 out (materials and crew) over 4 weeks, then $24,000 in. You front $14k for 28 days.

30 / 40 / 30: $7,200 in day 1 (covers materials), $9,600 in mid-week 2 (covers crew), $7,200 final. You front $0 at any point. Same revenue. Same margin. Zero cash drag.

The bottom line

The customer who refuses a deposit is telling you they’re going to be a collection problem.

Write the schedule into the contract. ACH or card-on-file at signing. Don’t mobilize crew until the deposit clears.