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Payment Terms for a Plumbing and Heating Business

Just a quick one today, but an important one nevertheless.

It’s very important to have clear payment terms in your plumbing and heating business. We are in uncertain economic times, therefore I would always recommend that you get paid up front, prior to doing any work for your customers. 

"Sending an invoice after the work is done and hoping to be paid isn’t a very successful way to run a business."


With the likes of Xero and the CRM’s (customer relationship management) available on the market it’s very easy to produce an invoice on the job or before the job. This really is the only way you can guarantee that you will be paid. Sending an invoice after the work is done and hoping to be paid isn’t a very successful way to run a business.

If you feel you may lose a job asking for full payment upfront, then you could present it so they can either pay 50% upfront and the balance at the end OR pay in full up front for a 5% discount. You will find that most people would rather have the discount.

If you have built up the ‘know, like, trust' factor with your existing clients then you will likely see that no-one has a problem paying you up front. They already know you are a reputable business. On the other end of that, if your new custom is coming from recommendations and referrals then they too will have no problem paying you upfront as they know you are going to do the work as agreed.

If you would like to discuss your payment terms with us, please don’t hesitate to get in touch.


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