How To: Get Paid on Time Every Time

If you want to get paid on time every time, you need to have clear payment terms agreed to upfront ✍️. This is where a lot of tradies — especially the small guys — slip up. They figure that if the job’s small, maybe $3,000 or $4,000, it’s not worth getting formal paperwork in place. That’s dead wrong ❌.

Every single job, whether it’s worth a dollar or a million, should have a written contract 🖊️. No exceptions.

Your contract needs to clearly lay out:

• The scope of work

• The timelines ⏳

• The payment terms, including deposits and stage payments 💰

• What happens in the event of late or non-payment ⚖️

In Australia, depending on your state or territory, there are legal limits on how big a deposit you can ask for. Generally, you can request between 5–10% upfront, depending on the job’s size and complexity 📊. That deposit isn’t just a nice-to-have; it’s a crucial cash flow buffer that helps cover your early material and setup costs.

But it doesn’t stop there. You need to break the job into logical milestones, with clear stage payments attached. For example, if you’re doing a bathroom renovation 🚽, you might break it down like this:

• 10% deposit on signing

• 25% after demolition and rough-in

• 25% after waterproofing and tiling

• 25% after fixtures and fit-off

• 15% on completion 🏁

The key here is not to wait until the end of the job to collect 100% of your money 🚫. That’s a rookie move. You never want to be in a situation where you’ve done all the work, handed over all the value, and are still sitting there hoping the client comes through. Ideally, you want the final payment to represent no more than 5–10% of the total job value, so that if something goes wrong, you’ve at least covered your costs — materials, labour, overhead — and you’re only risking part of your profit, not your entire margin 💼.

Protecting Your Cash Flow

Here’s where the smart tradies separate themselves from the ones who struggle: they set short payment terms and enforce them consistently 💪.

There’s no reason why you should be offering 30-day payment terms to residential clients. That’s madness 😵. For stage payments, you want 3–5 day terms max, and for final balances, no more than 7 days 📆. If a client misses a payment window, stop work immediately 🛑.

I know, I know — it’s uncomfortable 😬. You don’t want to rock the boat, especially if you’re halfway through a job and you’re trying to keep goodwill. But here’s the reality: late payment on one stage is a major red flag 🚩. If you keep working in the hope they’ll “catch up,” you’re just digging yourself deeper into the hole.

If you’ve set clear terms, agreed them upfront, and laid them out in a signed contract, then you have every right to pause work if the client breaches those terms. It’s not about being difficult — it’s about protecting your business 🏗️.

Dealing With Larger Contractors

Now, let’s talk about something slightly different: what if you’re a subcontractor working under a large builder or principal contractor?

In those cases, especially on tier 1 or tier 2 jobs, you might have no choice but to accept 45- or 60-day payment terms 🏢. That’s the commercial game — and you either play it or you don’t.

But even there, you can protect yourself by:

• Negotiating upfront deposits where possible 💬

• Securing progress claims with clear documentation 📋

• Registering on the Personal Property Securities Register (PPSR), so you become a secured creditor if something goes south 💼

Too many small businesses miss this step, thinking the PPSR is only for big operators. Wrong ❌. If you’re working under a company that has assets, registering your interest means you have legal priority if they go bust — which can be the difference between getting something or getting nothing 💥.

What To Do When Payments Fall Behind

Let’s be blunt: even with the best systems, sometimes you’re still going to face late payers 😠. The key here is what you do about it.

First, your contract should include provisions for charging late fees or interest 💸. Even if you never enforce them, they set a psychological anchor — the client knows they’re on the hook.

Second, don’t wait months to escalate ⏰. If a payment’s overdue by more than a week, start the follow-up process:

• Friendly reminder call or email 📞

• Formal overdue notice 📑

• Referral to a debt collection agency if needed ⚖️

If you’re dealing with a company, you can also file a PPSR claim or seek legal recovery through the courts 🏛️. But remember: legal processes take time and money. Your best defense is not letting the debt get too big in the first place 🛡️.

Final Word: It’s On You

Here’s some tough love: if you’re regularly finding yourself at the end of jobs with 50%, 70%, or even 100% of the money still owing, that’s on you 💥.

❌You didn’t set strong enough terms.
❌You didn’t secure deposits or stage payments.
❌You didn’t pause work when red flags appeared.

It’s hard, sure. But running a business isn’t just about doing the technical work — it’s about managing the financial side too 📊. Protecting your cash flow is your responsibility 💪.

At Intrade, we’re here to help you run smarter, stronger businesses 💼. Whether you need contract templates, advice on setting up stage claims, or just a second opinion on how to tighten your payment systems, we’re in your corner 💥.

Don’t let late payments wreck your margins or your mindset. You deserve to be paid, on time, every time 💯.