Extended payment terms are a reality in many industries. You do the work in January, invoice immediately, and don’t see the money until March. Meanwhile, you still have payroll, materials, rent, and other bills that don’t wait 60 days. The gap between when cash goes out and when it comes in is where businesses get into trouble.

The foundation of surviving long payment cycles is a cash reserve. Ideally you want enough cash on hand to cover at least two months of operating expenses. This buffer lets you pay bills on time even when receivables are still outstanding. Building that reserve takes time, but once you have it, the stress of waiting on payments drops significantly.

Match your vendor terms to your collection cycle where possible. If customers pay you in 60 days, negotiate net-45 or net-60 terms with your suppliers. You shouldn’t be paying for materials in 15 days when the customer who bought the finished product won’t pay you for two months. Not every vendor will agree, but many will if you ask and have a good payment history.

A business line of credit works as a backup, not a primary funding source. Draw on it to cover short gaps when receivables are delayed, then pay it down immediately when payments arrive. Using credit to cover regular operating costs month after month means something is structurally wrong with your cash cycle. The interest adds up quickly if you’re constantly carrying a balance.

Require deposits on new work whenever the market allows. Even 25% or 30% upfront changes the cash flow picture dramatically. Progress billing works well for longer projects. Instead of one invoice at completion, bill at milestones throughout the job. This gets cash flowing sooner and reduces the total amount outstanding at any point.

Offering early payment discounts can motivate faster payments. A 2% discount for paying in 10 days costs you money but might be worth it if you need cash now. Run the numbers to see if the discount is cheaper than borrowing to cover the gap. For some customers, 2/10 net-60 terms work perfectly because they want the discount and you want the cash.

Invoice factoring is an option if you’re in a tight spot, but understand the costs. Factoring companies advance you 80-90% of the invoice value immediately and take a fee when they collect. The fees eat into your margins, so this should be a bridge solution rather than your permanent financing strategy.

Cash flow forecasting prevents surprises. Map out expected payments and expenses for the next 90 days so you see gaps before they become emergencies. Your Findlay bookkeeper should be producing reports that show when money is expected to come in and when bills are due. Looking at this weekly or monthly lets you make decisions with lead time rather than scrambling at the last minute.

Don’t let 60-day terms turn into 75 or 90 days because you’re not following up. Strong accounts receivable management means tracking aging, sending reminders before due dates, and following up immediately when invoices go past terms. Customers pay the vendors who ask. If you’re not tracking who owes what and when, payments slip further and your cash flow problems get worse.

The businesses that handle extended payment terms well are the ones who plan for them rather than react to them. Build the reserve, negotiate matching terms, use credit strategically, and stay on top of collections. The 60-day wait becomes manageable when you’ve structured your operations around it.