When you don’t get paid on time, you’re not only losing money—you’re also losing momentum, opportunities, and control of your restoration business.
You’ve done the work. You’ve delivered incredible value. Why let the health of your organization hang in the balance of whether or not you’re getting paid?
The secret to getting paid with speed and less stress comes down to one game-changing tactic—clear payment terms.
When you establish clear payment terms you’re creating boundaries that give your restoration business the financial certainty it needs to thrive. By creating payment clarity, you’re also building trust, strengthening relationships, and setting yourself up for long-term success.
And here’s the best part: you can do it today. If you choose to, is up to you.
Let’s dive in. I’m going to walk you through why clear payment terms are game-changing, 6 practices for clearer and faster payments, and 3 communication hacks (including one incredible tool) to ensure your customers stick to your terms. Let’s go.
Why It’s Worth Setting Clear Payment Terms
You know as well as I do that cash flow is the lifeblood of your restoration business. Without it, you can’t invest, grow, or even maintain the level of service that sets you apart.
Think about it. You’re running a restoration business—delivering value, growing your brand, and making moves that count. What happens if the money you’re owed isn’t flowing in when it should? Everything stalls.
Let’s skip that payment train wreck and instead start being clear in our payment terms. If you do, here are four business benefits you’re likely to see:
Improved Cash Flow
When your payment terms are clear, you know exactly when the money is coming in. (Or, if it’s late - what additional funds you’ll get after that.) That predictability means you can plan, invest, and grow with confidence. You’re not stuck wondering when—or if—you’ll get paid. Instead, you both get paid faster and can conduct and grow your business with the unique confidence that comes from knowing your payment schedule.
Reduced Payment Delays
If your customers know exactly when and how they’re expected to pay, they’re far more likely to stick to those terms. There’s no ambiguity. No room for excuses. And there’s fewer payment delays. Clarity supports action. Watch it happen.
Clearer Terms = Fewer Disputes
Disputes are one of the biggest reasons payments get delayed, and most of the time, it’s because something wasn’t clear upfront. When your payment terms are locked in, you avoid back-and-forth, the “he said, they said,” and the misunderstandings that slow everything down. Clear terms mean clear agreements—and clear agreements lead to faster payments. Just watch it happen yourself.
Stronger Customer Relationships
When you create clarity through your payment terms, you’re not just getting paid faster—you’re building long-term relationships with customers who know they can count on you. Just the act of being clear establishes trust. They know what to expect, and they know you’ll deliver. And then, they do too.
Better business stability, faster payments, fewer disputes, and stronger relationships could all be yours with stronger payment expectations. While initiating clearer payment terms might seem like an effort, these are some of the baseline benefits that await.
6 Practices for Clearer & Faster Payments
Empower your business, keep your cash flow steady, and reinforce your leadership in the industry. That all sounds nice, but what does it actually look like? Here’s 6 business practices that will transform your payment process from shaky to rock-solid:
Practices #1 - Set the Payment Due Date: No Ambiguity, No Excuses
Your customers need to know exactly when their payment is due. Without a clear deadline, you’re giving them permission to pay late. From our decades of consulting, I can tell you this is often where the problems start.
Here’s two ways to set clear due dates that work for you:
Customize Your Payment Terms:
Part of taking control of your business is deciding the best length of time for your payment terms. You’ve probably heard terms like “Net 30” or “Net 15.” These simply mean that the customer has 30 or 15 days to pay after receiving the invoice.
But here’s the thing—you get to set the terms that work for your business. Don’t feel pressured to give longer deadlines just because it’s common practice. Find the balance that works for your cash flow.
Leverage Payment Milestones:
If you’re working on large projects, don’t wait until the end to get paid. Break up project payments into payment milestones—partial payments along the way. It’s a win-win. You keep the cash flowing, and your customer knows exactly what’s expected at each stage.
And of course, make sure your customers are clear on when and what is expected at each milestone. Their clarity means your timely payment.
Practices #2 - Make It Easy for Customers to Pay
Along with clarifying and customizing terms that work best for your business, we also encourage you to make it as easy as possible for your customers to pay you. The more options they have, the fewer barriers stand in their way. Here’s how to make it easy:
Offer Multiple Payment Methods:
Support credit cards, debit cards, ACH transfers, checks, and digital payment platforms like PayPal or Apple Pay—whatever it takes to get that money into your account. The goal is to eliminate friction and make paying you a no-brainer.
Highlight Your Preferred Payment Method:
Have a preference? Let your customers know. Maybe ACH transfers work best because they save you on credit card fees. If that’s the case, highlight it in your payment terms. Even if you just flag your preference, many customers enjoy doing you a favor by doing what’s easiest or most preferred for you.
Set-Up Online Payment Portals:
In the digital age, customers expect ease. Set up an online payment portal so they can log in, pay, and move on with their day. Faster for them, faster for you—everyone wins.
Practices #3 - Implement Late Payment Penalties
Here’s a hard truth: Sometimes people don’t act unless there’s a consequence for their inaction. Late payment penalties can create the urgency some customers need to pay on time. Here’s some things to articulate when designing your late payment penalties:
Late Payment Interest:
Charging interest on overdue invoices is a great way to incentivize timely payment. Even a small 1-2% monthly interest charge can make customers think twice about delaying their payment.
Flat Late Fees:
Another tactic is a flat late fee. This looks like charging a $50 fee for every invoice that goes unpaid for more than 10 days past the due date. It’s straightforward, easy to understand, and it gets results.
Grace Period:
If you want to show a little flexibility, you can offer a short grace period (ie. 5 days) before the penalties kick in. It gives customers a bit of breathing room while still maintaining the importance of paying on time.
As always, find the terms that work best for your organization and company culture and then take the steps to implement them.
Practices #4 - Early Payment Discounts: Reward Timely Payments
Another option is to reward your customers for paying early. Offering a small discount for early payments can dramatically speed up your cash flow. Between 65% and 80% of companies experience faster payments when offering early payment discounts. However, only a small percentage of businesses take advantage of this strategy, as many are reluctant to reduce their revenue by offering a discount.
Here’s our favorite option:
2/10 Net 30: This popular early payment discount means that the customer gets a 2% discount if they pay within 10 days. Otherwise, the full amount is due in 30 days. It’s a small price to pay for the benefit of getting paid faster.
Practices #5 - Dispute Resolution: Handle Issues Before They Become Problems
Let’s be real—sometimes things go wrong. Disputes happen. But the key is to resolve them quickly and efficiently with clear payment terms, so they don’t turn into delays. Clear payment terms include having your dispute process and workflow clearly laid out. Here’s how to bring clarity to your dispute process:
Dispute Notification:
Require your customers to notify you of any disputes within a specific time frame—7 days, for example—after receiving their invoice. This creates urgency around addressing the issue and keeps your projects and processes moving.
Resolution Timeline:
Clearly outline your dispute process and timeline for resolving disputes. We’ve found that proactively articulating to customers your dispute plan and process before any issue should arise, paves the way for quicker dispute resolution and payment.
Partial Payments:
Even if there’s a dispute, don’t let that stop you from getting paid. Have customers make partial payments on the undisputed portion of the invoice while you work out the rest.
Practices #6 - Recurring Payments for Subscription Services: Set It and Forget It
Recurring payments are the answer and clear payment schedules can truly set you up for financial success and growth.
If you offer subscription services, make sure your payment terms are built for successful consistency. Here are some tips for making sure your subscription services are serving your organization:
Billing Frequency:
Whether you’re billing monthly, quarterly, or annually, make sure your customers know when the bill is coming and when it’s due. Be sure to mention this in your onboarding conversation and then include it at the bottom of every invoice and bill.
Automatic Payments:
Set your customers up with automatic payments. It simplifies the process, reduces missed payments, and keeps your cash flow predictable.
Consistent Communication: 3 Ways to Ensure Your Customers Follow Your Payment Terms
Now that you understand the benefits and some of the strategies necessary for clearer payment terms, let’s talk about how to get your customers to get on board and paying promptly.
While change won’t happen overnight, decades of consulting have taught us that such change is possible. When you communicate clearly and consistently, you dramatically increase your chances of getting paid on time, each and every time.
Here are 3 vital steps to clarify your communication for accelerated payment:
1. Include Payment Terms Everywhere: No Surprises
Your payment terms should be front and center in every interaction. From the contract to the invoice, make sure your customers are fully aware of what’s expected. Here’s how:
Contracts and Agreements:
Spell out your payment terms in every contract. Have your customers sign off on them before any work begins.
Invoices:
Reiterate your payment terms on every invoice. Due dates, penalties, and preferred payment methods should all be there in the footer as a constant reminder.
2. Set Expectations Early: Get Buy-In from Day One
We’ve found that customers respond best to clear expectations from the start. During your initial conversations or contract negotiations, make sure your customer understands exactly how payment will work. Being clear from Day 1 saves your whole team time, effort, and unnecessary follow-up on the admin side.
As part of your onboarding process, walk your customers through the payment terms. Answer any questions and get their full buy-in. When they’re fully informed from day one, they’re more likely to stick to the terms.
3. Monitor and Enforce Your Payment Terms
Finally, the key to making payment terms work for you is consistent enforcement. Once you’ve set the rules, you need to stick to them. Here’s how:
Automated Reminders:
Set up automated payment reminders for upcoming due dates, overdue payments, and any late fees. Automation takes the hassle out of follow-ups and ensures that nothing slips through the cracks.
Regular Monitoring:
Use a system to track when invoices are sent, when payments are made, and when payments are overdue. Staying on top of your accounts receivable is non-negotiable if you want to maintain a healthy cash flow.
The best way we’ve found to both monitor and enforce payment terms is with AR Workflow, an industry-specific payment and workflow management tool we’ve designed specifically for our industry.
With AR Workflow you can:
Centralize Communications:
Collect and store all customer communications—whether they’re emails, SMS messages, or phone call notes—in a centralized system. Ensure that any team member can easily review the history of communications with a customer, eliminating confusion or duplicated follow-ups. The email syncing feature also ensures that all messages, regardless of the platform used, are logged and accessible in one location.
Accelerate Payment:
Make payments directly through the system using multiple payment methods like credit cards, ACH, or installment plans. When payments are made, AR Workflow automatically updates the payment status in QuickBooks, ensuring that the books are reconciled in real time. Offers additional payment options such as zero merchant fees with convenience fee settings, providing flexibility for businesses looking to optimize their collections.
Automate Reminders:
Once AR Workflow is set up, businesses can automate their entire accounts receivable process eliminating the need for manual intervention. This automation often saves up to 20 hours per week for teams, allowing them to focus on higher-level tasks. By automatically following up with customers, sending reminders, and updating records, the system significantly reduces workload, accelerates payment, and boosts overall efficiency.
Monitor Accounts:
Enjoy a comprehensive, user-friendly view of your accounts receivable operations. Access real-time data on active customers, total amounts due, cash collected, and open invoices. Monitor financial health at a glance, reducing the need for manual checks or data consolidation from multiple sources. Tracks key metrics like average payment speed, allowing managers to make informed decisions to enhance collection strategies.
These features and more can help you easily implement the changes articulated to clarify your payment terms and keep those payments coming effortlessly. Beyond that, you can streamline your process, reduce human error, and save countless hours in admin time.
Take Charge, Get Paid, and Unlock the Future of Your Restoration Business
At the end of the day, you deserve to get paid for the value you deliver— on time. By implementing clear, powerful payment terms, you’re securing both your cash flow and the future health of your company.
We’ve covered the benefits of clear payment terms, how to implement them into your work systems, and how to ensure that they’re followed. Now you’re ready to accelerate cash flow and supercharge your business.
This is your moment. Take control of your payments. Take less time to be more organized and receive faster payments. Build a business that doesn’t just survive, but thrives.
Put these strategies into action, and watch as your business steps into the next level of growth, financial stability, and unstoppable momentum. Now, go clarify your payment terms. Your future is waiting.
Try our 14-day free trial and see the AR Workflow difference for yourself.
Take Control of Your Payments and Unleash Your Restoration Business’s Full Potential
Take Back Control of Your Payments
and Your Restoration Business
Mortgage companies might be shaping the future of restoration payments, but that doesn’t mean you have to be at their mercy. By understanding their processes, building strong relationships, streamlining your operations, and managing your cash flow, you can take back control of your payments—and your business.
This is your business. Rise above the challenges, take control of the process, and create the space for exponential growth. The future is in your hands—are you ready to seize it?
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