Thanks in advance for replies to this. I am an owner engineer and I contract out to companies for services. Recently started a change where I am going to work 11/27-12/29 and invoice on 1/5/24 and then wait until 1/29/24 for the invoice to be paid. My recent contract I was invoicing weekly and getting paid net 7. What are options to bridge that cash flow delay and keep my bills paid? I am not keen on paying interest on a loan but I also am not aware if it is a write-off or not.
I am a single member company, started in March and contract out to companies at 12 month/40 hour/week clip. Got offered a new contract that is good for the next 3 years, 9 months into current contract. So I wasn’t budgeting cash in the business for the change in cash flow, assumed (incorrectly) all were able to bill weekly. So maybe it’s a red flag however I am looking for answers on what to do in this given situation.