Contractors across the country are facing a familiar but growing problem: accounts receivable are rising while backlogs are shrinking. In a recent episode of “If Walls Could Talk”, attorney Trent Cotney shared practical, contractor-tested strategies to help businesses collect faster, reduce risk, and protect cash flow in an uncertain market.

Smart Strategies for Faster Collections

As accounts receivable rise and backlogs ease, contractors can’t afford to let collections drift. In this episode, Trent Cotney shares practical ways to get paid faster: vet customers before signing, set clear expectations, track AR weekly, and follow a consistent contact plan that escalates from reminders to demand letters. He also explains why incentive-based collections can outperform hourly roles, how payment plans can unlock stalled balances, and when an owner’s personal call can turn an overdue invoice into real dollars.

Cotney, a partner at Adams & Reese and a longtime legal advisor to the construction industry, emphasized that effective collections start long before the first invoice is sent. With public records and online reviews readily available, contractors have more tools than ever to evaluate potential customers. Checking county records for liens or foreclosures, reviewing litigation history and scanning customer reviews can reveal warning signs that a job may become difficult to collect.

“If the red flags are there and you ignore them, it’s usually not going to end well,” Cotney said, noting that due diligence upfront can prevent costly disputes on the back end.

Once a project is underway, managing expectations becomes just as important as managing paperwork. Cotney stressed that contractors who communicate clearly, guide customers through the process and address issues quickly are far more likely to get paid in full. A positive customer experience, he noted, often translates into faster and more complete payment.

For owners and managers, Cotney delivered a direct message: never lose sight of accounts receivable. While AR tasks can be delegated, ultimate responsibility rests with leadership. He recommended reviewing AR reports weekly and asking pointed questions about aging balances, especially accounts approaching 60 or 90 days past due.

Consistency is critical, he said. Contractors should have clear standard operating procedures that include multiple points of contact, such as email reminders, phone calls and formal demand letters. Purposeful, repeatable processes help ensure no account slips through the cracks.

Cotney also challenged contractors to rethink how they staff and incentivize collections. Hourly AR roles, he said, often lack urgency. Tying compensation to performance or amounts collected can dramatically improve results.

When payments stall, flexibility can be key. Breaking large balances into manageable payments may help customers who cannot pay in full immediately. In some cases, resolving minor disputes or offering limited concessions can unlock payment and keep projects from turning into legal battles.

Finally, Cotney encouraged owners to make personal calls when necessary. A direct conversation from company leadership, he said, can have a powerful impact. “That personal touch makes all the difference,” he noted.

For contractors navigating tighter margins and slower demand, Cotney’s advice underscores a simple truth: disciplined collections are not optional. They are a core business function that can determine whether a company weathers a downturn or struggles to survive it.