Hi Guys
we too fell into the "always a month behind" cashflow nightmare
what we do now is send the invoice out on the first of the month stating that it is due for payment in 30 days.
ie we send the bill for March on the first of March clean weekly for the month and get paid on the 30th of the month, this actually qualifies for " up to 30 days credit"
with paying our staff weekly we used to have paid out six or even eight weeks wages before we got paid for four this meant cashflow was always tight and any profit we made was always ploughed back in to carry the next six weeks of wages.
Now we can use the cash for investing in new equipment etc
cashflow is a small business biggest enemy not the customers not the tax man not the staff, no they are all relatively easy but cashflow eugh
how many of us can take on any new large account say £5000 per month under the old way of paying wages for weeks until you get paid, we have done it and it really hurts on a friday when everyone gets paid and you are cash skint, owed a lot of money but nothing to spend no its not easy
so good luck with your first big customer and learn from many of us poor souls who didnt't know any better ,stick to your terms and conditions tell them how you want to be paid because a happy contractor does his best work and if they won't agree leave them be.
best wishes
gordon