Monday, August 13, 2018

Some Small Contractors Turn to Utilities for Faster Payment

UPDATE As we hear from more readers experiencing late payment terms affecting smaller contractors asked to do tower and network work, a new theme is emerging — diversification. As a way to buffer their cash flow against late payment from some in the telecom industry, certain readers tells us they’re taking work from other types of industries to keep their businesses afloat.

One contractor in the southeast told Inside Towers in an interview: “For three years, I have experienced the dreaded year-end non-payment issue with the same carrier. We have to make contingency plans with our financial institution, assuming we may not receive any payments during the latter half of the fourth quarter. It all gets paid in mid-January.”

He has begun taking different types of work because, “Somebody dragging out $300,000 over 90 to 120 days can be death. You lose vendors and employees” that way, he said. Continue Reading

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