Subcontractors rarely get upfront payments because they never ask. One founder who includes prepayment requests in every bid secures them regularly, while another assumes clients will reject the idea. Prepayment transforms cash flow and project success.
Chapters
The number 1 reason subcontractors don't get paid upfront is, wait for it, they don't ask. We've had many instances where I'm talking to 2 different subcontractors in the same industry, and I go, hey, you should really ask for an upfront payment as part of your bid, or you can put in an alternative bid where you ask for an upfront payment in exchange for a lower total cost, or whatever it is. And then one guy goes, no, the client will never ever accept that. And the other guy goes, yeah, I've been doing it for years, we get it every time. It is just because you haven't asked. Asking for the upfront payment is going to make a huge difference to your cash flow as a business and ultimately the success of that project.