12 Ways to Improve Cash Flow in Architecture Practices
Avoid 'Feast/famine cash flow', stabilise and strengthen your practice.
1. ASSESS CLIENT FEE STRUCTURES
Rather than invoicing only at project completion, structure your contracts to allow for stage-based or milestone billing. This approach spreads income more evenly across the project lifecycle, reducing reliance on lump-sum final payments. Another option is to bill clients monthly, based on the work completed during that period.
2. Shorten PAYMENT TERMS
Review your standard terms and aim for 14–21 days rather than the traditional 30+. For larger clients or public sector contracts, where you must offer 30 days, monitor overdue invoices closely and follow up promptly.
3. NEGOTIATE BETTER PAYMENT SCHEDULES
On the same note, if you're paying consultants, contractors, or software providers before receiving payment from your clients, you're effectively financing the project. Negotiate extended terms where appropriate to create a buffer between receivables and payables, improving liquidity.
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