Cash Flow for Trade Businesses: Getting Paid

You can have a full calendar, happy customers and an order book that stretches six months out – and still break into a cold sweat over payroll on the 25th. The reason is almost always the same: money comes in later than it goes out. For a trade business that fronts material, fuel and wages before the customer has even seen the invoice, liquidity isn't an accounting detail – it's the difference between being able to say yes to the next job or not.

The good news: cash flow is largely a matter of routine, not of how much you invoice. Below are the concrete levers a Swedish tradesperson can actually pull.

Profitability is not the same as liquidity

A company can be profitable on paper and still go under. Profitability is whether a job turns a profit once everything is settled. Liquidity is whether you have money in the account right now. A large, profitable project on 30-day terms can drain the kitty for weeks before the final payment lands.

Work out your cash conversion cycle: the day you pay for material minus the day the customer pays you. If that gap is 45–60 days, you're effectively financing the customer's project with your own money. The goal is to shrink the gap.

Set payment terms that actually protect you

Thirty days is a common default in Sweden, but nothing stops you agreeing shorter terms with private customers – 10 or 14 days is perfectly reasonable. Between businesses there's also a statutory safety net: under the Swedish Interest Act (räntelagen) an invoice falls due within 30 days unless otherwise agreed, and the EU is tightening rules on maximum B2B payment terms. Verify the current rules with an accountant, as the framework is changing.

Concrete moves that pull money closer in time:

• Invoice in stages. On bigger jobs: take a deposit or interim payment (a-conto) at the start, a milestone payment midway and a final invoice at completion. Then the customer finances the project, not you.
• Invoice the day the job is done. Every day you sit on an invoice is an extra day before payment arrives. The single most common liquidity leak is invoices stuck in the "to do" pile.
• Shorter terms for private customers. You don't have to offer 30 days just because everyone else does.

Late-payment interest and fees – charge for the delay

When a customer pays late you're entitled to compensation, and there's no need to be shy about charging it. Under the Interest Act you may charge late-payment interest equal to the Riksbank's reference rate plus 8 percentage points. The reference rate for the first half of 2026 is 2.00 percent, giving a late-payment interest of 10.00 percent a year. The reference rate changes every six months, so check the current level with the Riksbank before putting it on an invoice.

On top of interest there are fixed fees:

• Late-payment compensation of SEK 450 – applies between businesses (B2B) and against the public sector. It can be charged from the due date without a reminder. Note the SEK 450 is a ceiling: if you take it, you can't add reminder and collection fees on top.
• Reminder fee of SEK 60 per reminder – provided it's stated in the agreement or on the invoice.
• Collection demand up to SEK 180 and a payment plan at SEK 170 under the Act on compensation for collection costs (1981:739).

Print the late-payment interest and any fees directly on the invoice. It signals you're on top of things – and most slow payers prioritise the supplier who actually charges interest.

Build a routine for reminders and collection

Most customers pay when reminded. Have a fixed ladder: a friendly reminder a few days after the due date, a formal collection demand if that doesn't work, and then an application for an order to pay (betalningsföreläggande) at the Swedish Enforcement Authority. An order to pay currently costs SEK 300 in application fee plus SEK 340 in representation fee, which you can normally pass on to the debtor – but often the mere threat of the Enforcement Authority is what gets sluggish payers moving. Check current fees with the Swedish Enforcement Authority (Kronofogden), as they're adjusted.

The key is consistency. A system that sends reminders automatically removes the awkward personal element – it isn't you nagging, it's the routine running.

Get the VAT and ROT money out faster

Two big items hit a tradesperson's cash particularly hard. VAT must be reported and paid according to your VAT period – choosing monthly reporting ties up less capital than quarterly, but it depends on your turnover. Confirm the right period with the Swedish Tax Agency.

The ROT deduction is a classic liquidity trap: you deduct the customer's share on the invoice and then wait for the payout from the Tax Agency. Request the ROT payout the moment the job is invoiced – every week of delay is money you're fronting yourself. Note that from 1 January 2026 the ROT subsidy rate is planned to return to 30 percent of the labour cost after a temporary increase; verify the current rates and rules with the Swedish Tax Agency (Skatteverket), as these figures change with policy.

Let the system do the work

Most of the above comes down to one thing: it gets done, every time, even on a hectic Friday. That's exactly where a joined-up system makes the difference. In FieldApp the invoice is created straight from the job with material and time already filled in, the ROT deduction is calculated automatically, and everything syncs to Fortnox for the books. Reminders and status follow the invoice without you tracking who hasn't paid. Less admin, faster payment – and a balance that finally reflects how well you actually work.

Want to tighten cash flow without more paperwork? Try FieldApp free for 14 days and see how much faster the money comes in when invoicing happens on its own.