Master Cash Flow in Your Heavy-Duty Repair Shop

Master Cash Flow in Your Heavy-Duty Repair Shop

Cash flow is the lifeblood of every repair shop. You can have full bays, skilled techs, and loyal customers - but if cash isn't flowing in faster than it's going out, you're in trouble.

Heavy-duty shops face unique cash flow challenges: high-dollar parts, multi-day repairs, fleet accounts on net terms, and seasonal swings. Managing these well means the difference between growing your business and scrambling to make payroll.

This guide covers practical strategies to master cash flow in your diesel or heavy-duty repair shop.

Why Cash Flow Is Different in Heavy-Duty

Unlike quick-lube shops or light-duty service, heavy-duty repair involves:

• High parts costs: A single turbo, transmission, or DPF can run thousands of dollars.
• Longer repair cycles: Jobs often take days, not hours, tying up labor and bay space.
• Fleet accounts on terms: Net-30 or Net-60 invoicing delays cash even on completed work.
• Seasonal demand: Spikes in spring and fall, slowdowns in between.

These factors mean you need more working capital and tighter management than a typical auto shop.

1. Invoice Fast, Invoice Accurately

The clock starts when you finish the job - not when you finally send the invoice. Every day you delay billing is a day you delay getting paid.

Best Practices:

• Invoice the same day the job closes. Don't let paperwork pile up.
• Use digital invoicing so customers receive bills instantly via email.
• Ensure accuracy: Disputed invoices delay payment. Get the details right the first time.
• Include clear payment terms and options on every invoice.

ShopView generates professional invoices directly from work orders - no double entry, no delays. Customers can pay online, cutting days off your receivables cycle.

2. Collect Deposits and Progress Payments

On big jobs - engine rebuilds, transmission swaps, major overhauls - don't wait until the end to collect.

• Require a deposit before ordering high-cost parts. 50% upfront is standard for jobs over $2,000-$3,000.
• Bill progress payments on multi-day jobs: when parts arrive, when teardown is complete, and at final delivery.
• Communicate clearly upfront so customers expect the payment schedule.

This protects you from customers who disappear or dispute charges after the work is done.

3. Manage Fleet Accounts Carefully

Fleet work is the backbone of many heavy-duty shops - but Net-30 or Net-60 terms can strain cash flow if you're not careful.

Tips for Fleet AR Management:

• Credit check new accounts before extending terms. References and payment history matter.
• Set credit limits and enforce them. Don't let any single account run up unlimited balances.
• Invoice promptly and follow up on aging receivables weekly, not monthly.
• Offer early payment discounts (e.g., 2% off for payment within 10 days) to accelerate collections.
• Charge late fees as stated in your terms - or be willing to pause work until accounts are current.

Pro Tip: Your shop management software should track AR aging by customer so you can see who's slow to pay at a glance.

4. Control Parts and Inventory Costs

Parts are your biggest variable cost. Buying smart keeps cash in your pocket.

• Don't overstock. Excess inventory ties up cash and risks obsolescence.
• Use reorder points to buy just in time, not just in case.
• Negotiate vendor terms: Net-30 from suppliers gives you breathing room.
• Track parts margins. If you're not marking up enough, you're losing money on every job.
• Return unused parts promptly for credit.

ShopView's inventory module tracks stock levels, alerts on reorders, and links parts directly to jobs - so you know exactly what's on the shelf and what's already committed.

5. Capture Every Dollar of Labor

Unbilled labor is invisible profit leakage. Every hour a tech works should show up on an invoice.

Common Labor Leaks:

• Diagnostic time not billed.
• "While we're in there" add-ons not logged.
• Comebacks and warranty work not tracked (or not charged when appropriate).
• Techs working overtime without billing customers accordingly.

Solution: Use digital work orders with time tracking. ShopView logs tech hours against each job automatically, so nothing slips through.

6. Forecast and Plan for Seasonality

Heavy-duty demand fluctuates. If you know what's coming, you can prepare.

• Build a cash reserve during peak months to cover slow periods.
• Delay major purchases (equipment, facility upgrades) until cash is strong.
• Schedule PM campaigns and proactive outreach before busy seasons to smooth revenue.
• Negotiate flexible terms with vendors for slow months if needed.

Review your financials monthly - not just at tax time - so you can see trends and act early.

7. Offer Multiple Payment Options

The easier you make it to pay, the faster you get paid.

• Accept credit cards - yes, even with the fees. Getting paid today beats chasing checks for 60 days.
• Offer online payments via invoice links.
• Consider financing options for large repairs, especially for owner-operators.
• ACH/direct deposit for fleet accounts speeds up recurring payments.

ShopView supports integrated payment processing so customers can pay directly from their invoice - no extra steps, no delays.

8. Know Your Numbers

You can't manage what you don't measure. Key cash flow metrics to track:

• Days Sales Outstanding (DSO): How long it takes to collect after invoicing. Lower is better.
• Accounts Receivable Aging: How much is 30, 60, 90+ days overdue?
• Gross Profit Margin: Revenue minus parts and labor cost. Are you profitable on each job?
• Operating Cash Flow: Cash generated from operations after expenses.

Set up a simple dashboard or weekly report so you always know where you stand.

9. Use Technology to Accelerate the Cycle

Paper processes slow everything down. Digital tools compress the cash cycle:

• Digital estimates get approvals faster.
• Real-time job tracking means faster completions.
• Instant invoicing eliminates billing delays.
• Online payments collect cash immediately.
• Automated reminders follow up on overdue accounts without manual effort.

ShopView connects the entire workflow - from estimate to invoice to payment - so cash moves faster through your business.

Conclusion: Cash Flow Is a Skill, Not Luck

Healthy cash flow doesn't happen by accident. It takes discipline, systems, and attention. But the payoff is huge:

• Less stress around payroll and bills.
• Ability to invest in growth - more techs, more bays, better equipment.
• Negotiating power with vendors and customers.
• Resilience during slow seasons or unexpected expenses.

Master your cash flow, and you master your business.

👉Ready to tighten your cash cycle?Book a free demo of ShopView and see how digital shop management accelerates billing, collections, and profitability.