How to Handle Cash Flow in Construction: 3 Simple Tips

Cash flow is one of the biggest concerns for those working in the services industry, and construction is no exception. Here are three practical ways to ease any issues with cash flow in your first year of business.


  1. Even out the peaks and valleys (or highs and lows due to the unpredictability of the industry) by finding anchor clients. What are anchor clients, exactly? Direct customers, like corporates, that pay more quickly.


  1. Rather than only billing for a deposit and then waiting to invoice at the end of each project, further break up your invoices so that you have smaller amounts of money coming in more frequently.



  1. Be smart with your money and take advantage of sales or coupons. Stock up on supplies you know you will always need by keeping an eye out for things like end of season sales from local vendors.


  1. Take advantage of any help the bank can give you by having at least one small business loans or line of credit to bridge any cash-flow gaps. Be careful, though, that you do not overspend as this can become a very slippery slope.



Now that you’ve got the knowledge, it’s time to advertise your construction services! Head to or your Gumtree app (click for Apple & Android).

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