You’re paying suppliers before you can invoice customers.
An accepted job can require cash well before a valid customer claim. Map supplier payments against contractual billing milestones so the funding gap is understood before work accelerates.
Corporate Recovery Partners
01 / 06
The supplier invoice comes before the claim milestone
A flooring contractor must pay for materials when they leave the warehouse. The customer contract permits billing only after installation, and access to site is delayed. The job may still earn a margin, but the contractor needs to fund materials and labour before the first invoice can properly be issued.
List supplier deposits, dispatch payments and other purchase dates beside customer claim milestones. Use the actual contracts and order confirmations rather than standard terms copied from a previous job.
Identify what evidence is required before a claim can be submitted. Work performed and contractual entitlement to bill may not occur at the same point.
Include installation costs and the customer payment term after the invoice. Business.gov.au cash-flow guidance helps show when money leaves and returns. A billing milestone is not the same as cleared funds.
Test a realistic access delay or approval query. The business needs to understand the largest interim funding requirement, not merely the difference between total revenue and total cost.
Ask whether supplier timing, staged delivery or an appropriate customer payment arrangement can be negotiated. Have changes documented and checked against applicable requirements. Do not simply issue an invoice earlier than the agreement permits.
Compare any discount lost or fee added with the funding benefit. The cheapest unit price may require a payment timetable the business cannot safely support.
Identify confirmed funds and other commitments competing for them. If the gap remains, discuss suitable funding or operating alternatives with the accountant and adviser before ordering more materials.
Keep procurement and accounts on the same timetable. A revised customer start date should trigger a funding review rather than leave the old collection date unchanged in the forecast.
