Maintaining a healthy cash flow for your roofing business is essential to your long-term success.
What is cash flow? Cash flow is the net amount of cash that flows in and out of your business. If you’re struggling with your roofing company’s cash flow, you need to address it immediately.
When cash flow problems persist, you’ll face bigger issues down the line if they remain unresolved—including late payroll payments, defaulting on bills, and even hits to your creditworthiness.
In this blog post, we’ll cover five of the best things you can do to improve your company’s cash flow.
5 Ways to Improve Your Roofing Business’s Cash Flow
Here are five ways to increase cash flow at your roofing business today:
- Use a payment processor
- Get paid on time
- Adjust pricing
- Lease equipment
- Negotiate with suppliers
Use a Payment Processor
First and foremost, invest in a payment processor. A great payment processor will help you improve cash flow before issues get out of hand. For example, JobNimbus Payments has helped users cut collection time by 49.6%.
A payment processor helps you:
- Get paid faster.
- Manage and track payments.
- Save time.
- Give your customer more payment options.
Get Paid on Time
You may think you have no control over when a customer pays you for a completed job, but that’s not true. There are a few things you can do to speed the process along. Try out these tips to help you get paid on time:
- Incentivize early payment through discounts.
- Send invoices out immediately.
- Collect deposits for jobs.
- Ensure your invoices are simple and easy to pay (like email and text-to-pay options)
- Utilize electronic payments.
- Track and review customer payments.
Ensuring clients pay your roofing business on time helps you improve cash flow. Timing is everything. When you’re paid quickly (or early!), you’re able to stay on top of your business expenses.
Adjust Pricing
Many business owners are hesitant to increase their prices. We understand it can be scary, but it may be necessary if you’re facing a cash flow problem.
Experiment around with different price ranges and try to find the sweet spot. Obviously, you don’t want to lose customers—that would really damage your cash flow.
You may be underselling yourself and have customers who would pay more for your services.
Lease Equipment
One way to improve cash flow at your business is to lease equipment instead of buying it. While leasing equipment can be more expensive in the long term, it allows you to use a monthly payment plan.
If you have a cash flow problem, the benefit of leasing may outweigh the cons.
Negotiate with Suppliers
Cutting back on business expenses is a great way to accelerate cash flow at your roofing business. To start, try negotiating more with your suppliers. If you’ve developed a good relationship, you may be able to cut down on the cost of materials.
If you can swing it, it’s great to pay suppliers early for a discount. Some suppliers may even offer loyalty discounts. You never know if you don’t ask!
Optimize Your Cash Flow
As you look to grow your roofing business, it’s important to commit to smooth and efficient business operations.
Improving cash flow at your roofing company ensures you don’t get stuck in the daily weeds. When you’re simply trying to keep your head above water, you have no time to think about improving operations or investing in your company’s future.
Try these five tips to improve your roofing company’s cash flow, whether you’re trying to get out of the red or already doing well. If you want to boost your cash flow, use a payment processor like JobNimbus Payments to put you on the right track.
