/industries/services
The invoice clears weeks after the job does.
Consultants, contractors, and agencies get paid on net-30 or net-60 terms — but the crew, the software bill, and the subcontractors all want paying now.
The pattern
What runs professional & field services thin.
- Net-60 doesn't cover this week's payrollA signed contract and a completed job are good news that still leave a real gap before the client's check actually lands.
- A big win means a bigger cash gapLanding a large engagement often means staffing up or subcontracting out before the first milestone payment clears.
- Tools and software renew on their own clockLicensing, equipment, and vehicle costs don't wait for a slow-paying client to catch up — they're due whether or not the invoice has cleared.
- A backstop beats a standing balanceMost gaps are two or three weeks wide — a line that opens and closes with the invoice cycle fits better than a loan sized for a problem that isn't permanent.
The math
What this could look like.
A services firm with a $100,000 line draws $30,000 to cover payroll while a client's invoice is 35 days from clearing. Interest accrues only on the $30,000 drawn, only for those 35 days. When the invoice pays out, the draw is repaid and the full $100,000 is available again — ready for the next gap between finishing the work and getting paid for it.
Illustrative example
- LINE LIMIT
- $100,000
- AMOUNT DRAWN
- $30,000
- ILLUSTRATIVE APR
- 15%
- DAYS OUTSTANDING
- 35
- INTEREST
- $432
- TOTAL REPAID
- $30,432
Illustrative rate for math only — not an offer. The untouched portion of the line costs nothing until it's drawn.