Cash Management Strategies for the Construction Industry
The construction industry operates in a project environment that often involves progress payments from their customers.
Contractors typically submit invoices at specific stages of the project. Customers then may have 60 to 90 days from acceptance of the invoice to pay for the services performed.
Therefore, matching cash inflows against outflows can be challenging. In this short article, written by RSM, they explore a few strategies that can help to reduce liquidity risk in construction entities.