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Growth decision

Can my business afford to take a big contract?

A contract can be profitable on paper and still hurt the business if you must fund wages, materials or subcontractors long before the customer pays.

Winning work can consume cash

Estimate the cash needed before the first payment arrives: upfront materials, extra payroll, subcontractors, deposits, insurance, travel and VAT timing. Then compare that funding need with the cash cushion you cannot afford to lose.

Questions worth testing

  • How much must we spend before the first invoice is paid?
  • What if the customer pays 15 or 30 days late?
  • Does taking this work delay profitable work for existing customers?
  • Can we negotiate a deposit, stage payments or shorter terms?
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