How can I make my contractor pays me on time ?

Question

I am a subcontractor - the contract is with the Canadian government. My contract says 15 days net from the day I submit my invoice. I am self-employed not really a company to afford late payments - Any ideas ?

Answer 1

There's no real way to enforce this. You can try charging a late penalty. But, the bottom line is that they have you over a barrel. If you can't afford to work by their rules, you'll simply have to find other people to sub-contract to.

In the US, you can get short term loans based upon accounts receivables. That might be an option.

For what it's worth, many government agencies in the US pay by credit card ... this speeds up receipt of payment.