Cashflow

[wili2]

Can anyone help me with determing a cashflow system?
Maybe some tips and/or tricks.

The problem is that we make tenders in which we are sometimes allowed to make statemanents about payment periods. i.e. 10% at project start 45% at 50% of execution complete and so on.
Our customers pay us after i.e. 60 days. We have to pay our contractors after 30 days and some after 45 days.

I want to make a payment schedule so that the cashflow is preferably positive at all times.

Currious for solutions.
Greetings Wili2

 

[gerhardl]

Seen over one single project, you would as you states, at times not have money to pay the bills. This is what makes expanding companies go broke.

You are a mechanical engineer, like myself. We make our living getting the correct bolts supplied at the correct time in a project.

Suggestion: pretend the necessary cash to be in gold bars, put it on the material list and contact suppliers (banks, earlier customers, bosses - and economic departments) on how to have it available within critical time for the project.

(This is actually what people with economic education do, -only that they spend five years at university learinig to describe it with fancy words ;-)

 

[MedicineEng]

This will only work if you have other cash revenues to support the different payment conditions. One "option" is to have a loan (or loans) from the bank, but this will eat your profit as you will have to pay interest.
Other is to subsidize this project with other projects that have better payment conditions.
The last one is to force your suppleirs to accept new payment conditions.