Cashflow Planning
Strong cash flow management helps regional businesses survive long payment terms, avoid financial stress, and seize growth opportunities confidently.
Overview
When working with major projects, getting the price right and ensuring timely payment are essential to business survival. Regional businesses often face challenges related to long payment delays and unclear expectations. This section will help you understand how to set fair prices and negotiate payment terms that work for your business.
Many regional suppliers report frustration with standard payment terms of 30, 60 or even 90 days. These delays can create serious cash flow problems. Without reliable income, it becomes difficult to pay staff, order supplies or plan for growth. For small businesses, this can be a major barrier to scaling up.
At the same time, large projects rely on accurate pricing to manage budgets and evaluate proposals. Your pricing must be competitive, but that does not mean being the cheapest. If you underquote and cannot manage the work effectively, it can damage your business reputation and lead to financial losses.
What Regional Businesses Are Saying
- “We are seriously hindered by non-payment and poor payment terms from large companies.”
- “As a new Indigenous company, we rely on quick payments to secure loans and keep projects going.”
- “Inappropriate payment times make it hard to plan and grow.”
What Major Projects Are Looking For
Major projects expect:
- Transparent pricing with clear breakdowns
- Value for money, not just low prices
- Financial stability and the ability to deliver
Some projects are starting to adopt improved payment practices. For example, the Local Buying Program used by BHP offers seven-day payment terms for eligible suppliers, along with access to support services.
What You Can Do
- Be clear about your payment expectations in quotes and contracts
- Ask about deposits, milestone payments or progress billing
- Link payments to deliverables instead of waiting until the job is complete
- Prepare a cash flow forecast and speak to your bank about finance options
- Avoid underquoting just to win the work
What This Toolkit Offers
In this section, you will find:
- A guide to negotiating payment terms
- Sample quote wording to include your payment structure
- A quoting checklist that covers pricing, timelines and terms
- A cash flow planning guide
- Links to programs like C-Res that offer faster payment options
Getting paid on time and pricing your work properly can make the difference between success and struggle. This Toolkit gives you practical tools to protect your business and set yourself up for sustainable growth.