Finance and Loans for Tradie

Finance and Loans for Tradies- Are Cash Jobs Really Worth It?

Cash is king or is the king dead?

For some tradies in business, sometimes cash doesn’t quite make it to the bank business account or financial accounts…

It seems from an initial perspective that this cash is beneficial in a number of ways. Yes it is great to have cash in your pocket with immediate purchasing power. Whilst this cash can be used for a bite to eat, buy whatever you need, clothes, or for a short break somewhere. Sometimes there is the view that the taking of the cash means a reduction in turnover which in turn reduces profit and taxes.

But there is a downside and it tends to comes much much later in a number of ways. Usually the first thing is you need to go to the bank for a loan or to roll over your existing facilities with the bank. The result here is you fail to get approval from the bank or the interest rate you are offered by the bank seems too high. In some cases we are seeing people pay between 3% to 5% more than they should for their business funds because their financial accounts from their accountant do not show a strong ability to service the loan facilities you require.
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Top 3 Tips for Tradies! How to Get Paid Quickly by Customers

Terms and Conditions of Trade, contracts, tips and more

As someone who speaks to tradies regularly I bet I can guess what the worst part of your week is…. Having to chase up your outstanding accounts. It can be a time consuming and pointless exercise where you end up feeling frustrated and powerless right?

The good news is that if you don’t like the hassle of chasing bad debts there is some light at the end of the tunnel. Implement these three tips and get on with what you do best – making money, not chasing it!

1. Put a contract (Terms and Conditions of Trade) in place and get it signed by both parties

The number 1 reason tradies have trouble when chasing their debts is from doing business on a handshake. The days of the old handshake are, regrettably, long-gone. By putting in place a set of Terms and Conditions of Trade that sit on the back of your quote, for example, you have a legally binding contract that you can fall back on if things go pear-shaped. The Terms and Conditions of Trade contract should set out the rules of doing business with you and the consequences (your leverage) if the rules are broken – ie. Your client doesn’t pay. You need to think of your business as a bank, start acting like one. It’s amazing how quickly you will become a priority to pay.

2. Get  job variations agreed to in writing

The main cause of disputes for tradies happens when the client or their partner asks you to do additional work to the original quote. Feeling they need to maintain the “goodwill” status quo the tradie proceeds to carry out the extra work on a verbal authorisation. When the client gets the invoice for the additional work it turns into a “he said-she said” argument on what was and wasn’t authorised and what was included and excluded from the original quote. A paper trail is always best!

3. The early bird gets the worm

If you have a debtor who is refusing to pay, after having sent the invoice and a friendly reminder, you need to escalate quickly. The quicker you take action, the more likely you are to get paid. Point out a reasonable time frame and deadline to your debtor for payment and the consequences if they fail to meet the deadline. If and when the deadline expires you need to act immediately and escalate to a debt collection agency.

As a tradie in business, if you can stick to this formula, you will be able to watch your cash flow grow and your free time return.

Need Help In Growing Your Trade Business?

Contact us at Tradebusters for a FREE Tradie Help Consultation. We have specialist solutions for trades including Website Design, Local Area Lead Generation Strategies, Social Media and Marketing Support, Business Coaching and more. Contact us today.

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Tradesmen Insurances – Are You Sure You Are Protected?

“I’m OK, I have insurance in my Super fund”

This is something really common that I hear from tradies. Most of you probably have a Super fund account with CBUS or something similar. It is great that these super funds provide some insurance inside super but I’m worried about 3 key areas: Read more

Tradie website

Trading Terms and Conditions: Services and Documentation

Trading terms and conditions: Clear and concise terms and conditions are important to your business

Your potential clients need to understand what is expected of them when they choose you as their professional tradesman. How do you help them to understand the concept of payment for your services and use of your business website? You hire professionals to help you create your trading terms and conditions documentation. Without clear documentation and information, clients and potential clients can take advantage of you, which will hurt your income as well as your business credibility. Read more

Sydney renovations

Are You Ready to Take On Trending Indoor Outdoor Renovations?

Every year rings in new trends in home renovations, just like it sparks New Year’s resolutions. Tradies have to be prepared for what’s up-and-coming or trending as these changes come about. It’s vital to your business to understand the latest trends in home extensions: indoor-outdoor rooms. These projects provide you with a new income opportunity and add to your versatility, credibility and reliability in your local area.

Indoor-outdoor spaces encompass any area that connects to the home and give the homeowner outdoor living options. The designs for creating this type of space can be some combination of functional, aesthetic, and relaxing.  If you are looking to grow your business, the following trending indoor-outdoor renovation projects should be on your checklist. Read more

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5 Top Tips to Market Your Tradie Services Whilst Working on the Job

Did you know marketing your trade business locally can be easy and inexpensive? 

Everyday you are on-the-job is a golden opportunity to market your tradie services to the local community. Don’t waste it!

You are in the right place at the right time and with these simple techniques you can maximise your return on time and your marketing dollar.

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Tradies, Check Your Contracts!

Important changes to small business contracts – ensuring compliance with the Unfair Contract Terms legislation

Important changes to laws that affect the fairness of contracts entered into by small business are now in place. Known as the Unfair Contract Terms legislation, this new Federal Government legislation came into effect on 12th November 2016 and protects small businesses from unfair terms in contracts.

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Supersteam: What I Need to Do to Get Ready

Preparing For SuperStream

Do you have employees? Then you may have already heard the new buzz word floating around at the moment, SuperStream!

Whether you are a trade business, or any business for that matter with 1 or more employees, you will need to get informed and understand the impact of SuperStream to your business.

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GeoOp and Tradebusters Join Forces On Tradie Business Help Hub

Help Australian Tradies in Business

GeoOp and Tradebusters® have joined forces to help Australian tradies in business.

GeoOp (GEO), a mobile workforce software company, has paired up with consumer based marketplace Tradebusters to deliver business support to Australian tradespeople.

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How To Turn Your Customers Into Raving Fans?

90% of customers trust recommendations!

It’s true. And compare that to spending money on advertising your business which only has a trust level of about 14%.

According to numerous surveys, people are more likely to trust a brand or a business that someone has recommended. Why, because it’s credible, based on a real experience and at the end of the day, who doesn’t want a good trusted business in their home, business or life.

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