How to Get Paid Faster
The average electrician waits 21 days to get paid. Some wait 45+. That's your money sitting in their account.
Here's how to compress that to 3-7 days.
The Deposit Strategy
For jobs over $500, collect a deposit upfront.
Why Deposits Work
1. Commitment: Customer pays now, so they're committed 2. Cash flow: You have money before you buy materials 3. Risk reduction: If they ghost, you didn't lose much 4. Professional: Deposits are standard in contractor business
How Much to Collect
- Flat-rate jobs under $500: 0% deposit
- Flat-rate jobs $500-2,000: 30-50% deposit
- Flat-rate jobs $2,000+: 50% deposit
- Hourly jobs: 1-2 hours of labor as deposit
- Time & materials: 50% deposit before you start
The Script That Works
'To reserve your appointment and secure your materials, we need a deposit. It goes toward your final invoice. We accept card, ACH, or check.'
Most customers pay it without objection.
Multi-Stage Billing (For Long Jobs)
If a job takes 3 days: - Day 1: 50% deposit due before work starts - Day 2: Progress payment when halfway done - Day 3: Final payment on completion
This keeps cash flow steady.
Online Payment Links
The single biggest factor in fast payment: making it easy to pay.
Customers who can click a link and pay instantly = 80% pay same day. Customers who have to mail a check = 60% take 15+ days.
How to Set Up
Use a payment processor: - Stripe: $0 setup, 2.2% + $0.30 per transaction - Square: $0 setup, 2.6% + $0.30 - PayPal: $0 setup, 2.9% + $0.30
All cost about the same. Pick one and integrate with your invoicing app.
Where to Put the Link
1. On the invoice itself 2. In email 3. In text 4. QR code on printed invoices
The easier you make it, the faster they pay.
Automatic Payment Reminders
Set it and forget it.
Day 1: Invoice Sent Send professionally. Include payment link. 'Due within 7 days.'
Day 3: No Payment? Automatic email reminder: 'Just a friendly reminder your invoice is due.'
Day 7: Still No Payment? Text reminder: 'Your invoice from [date] is due today.'
People are busy. Three reminders get most invoices paid.
Day 14: Follow-Up Call 'Hi [Name], I'm checking on the invoice from [date]. Did you get it?'
Often they forgot or their accountant misplaced it.
Incentivizing Fast Payment
2% Discount for Same-Day Payment 'Pay today and save $20' (on a $1,000 invoice).
The discount costs you $20 but saves you 15+ days of waiting. Your money earning interest is worth less than $20.
1% Discount for Payment Within 48 Hours Same idea, slightly less aggressive.
No Discount—Just Fast Payment If your terms are 'due in 7 days,' enforce it.
Handling Slow Payers
Types of Late Payers
1. Honest forgetfulness - Solution: Reminder text/call works immediately - Payment: Usually within 1 day
2. 'I'm waiting for insurance' - Solution: Get insurance company info, call yourself - Ask: 'When do you expect reimbursement?'
3. 'I'm unhappy with the work' - Solution: Fix the issue or refund their money - If dissatisfied, dragging it out hurts reputation
4. Chronic non-payer - Solution: Payment plan or lawsuit - After 30 days late: Pursue collection - After 60 days: Small claims court
When to Stop Working for Someone
Red flags: - Constantly negotiating price mid-job - Complaint about every invoice item - Multiple checks 'lost' - No clear decision-maker - Refusing to pay deposits
Walk away early. Non-payment kills businesses.
Tools That Help
Use CrewDash to: - Collect payment links on invoices - Automatic payment reminders (email and text) - Track unpaid invoices - Direct integration with Stripe/Square
Automation is your friend.
Case Study: From 21 Days to 5 Days
Solo electrician improvements: 1. Started collecting 30% deposit on jobs over $500 2. Added payment link to all invoices 3. Switched to digital invoices only 4. Set up automatic reminder emails 5. Asked happy customers for reviews
Results: - Average payment time dropped from 21 days to 5 days - 70% of customers paid within 2 days - Fewer unpaid invoices - Better cash flow
Faster payment compounds. Every day you're paid earlier is more cash for materials and more jobs you can take.