Best Practices for Managing Project Cashflow

Dear BIVILLEPM Community,

I was studying the Project Cashflow Report KPIs, and it gives me insight to keep the average days for collection of payments after a milestone below 30 days. Previous article on project cashflow KPI.

Unless it’s a capital-intensive project like the one I’m currently doing, I think I will aim to keep all due payments below my company monthly burn rate to be paid within 7–30 days.

No business should owe my company unless we have factored in the delay in payment into the profit margin. From 7 days, my team will be sending you weekly reminder email, and after 30+ days, we might consider involving an agency specializing in debt collection and halt all further work as my burn rate and cost of capital necessitate a cash inflow from your organization. #Cazzo! (lol…in my former Italian boss voice.)

Image By #GeorgeNWOGU

It’s okay to ask the client for the terms of payments, have it in the invoice and give discounts for prompt payments too. It’s a good practice to also set standards for your clients, just as your clients are setting for you.

#ProjectCashflow #PaymentCollection #BusinessStandards #DebtCollection #GeorgeNWOGUArt #COO #GeorgeNWOGU #BIZVILLEPM 🌐🚀

Warm regards,

Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)

Motto: Humanity First, then Smart and Green. 🚀

My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited

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