How To Get Paid on Time
Most people dread the idea of making follow-ups for collecting unpaid invoices. You, however, have an obligation of undertaking this task if you plan on keeping your business afloat. This means that you get money to pay suppliers, employees, rent, and make a profit. Notably, you have to take the right approach from the onset of the process. In this blog, you will learn various aspects of dealing with unpaid invoices. They include; avoiding bad-paying clients, sustaining cash flow without financing, best financing options, and minimizing the number of disputes through proper collection methods.
Getting Paid on Time
The first step in dealing with unpaid invoices is to ensure that you get paid on time. This means that you have to check your client’s payment history. Nowadays, you can get this information from online platforms such as commercial credit reports. Other reports include Day Sales Outstanding (DSO) and credit score.
You should also ensure that you have a well-written contract that is sent promptly to the client. This way, you get to avoid having unpaid invoices as a result of the late delivery of invoices and acceptance letters. When you realize a delay in payment per the contract, you must follow up with clients. This can be done via email or call. It is also worth mentioning that following up on unpaid invoices requires professionalism.
Cash Flow Without Financing
As a business person, it is crucial to find ways of securing payments in advance or in good time. You can achieve this goal through early payment discounts. For instance, you can offer a 2% discount for clients who pay within ten days of receiving invoices.
What are the Alternatives for Small and Midsize Businesses?
Your business may not qualify for a business line of credit. If this is the case, you should consider asset-based lending (ABL) or invoice factoring to deal with unpaid invoices.
Looking for Financing?
Did you know it may be possible to get a great loan even if your bank won’t give you a loan? Here at Quick Capital Funds, we regularly help startups, small to mid-size and large businesses get their hands on the necessary funding through our commercial finance programs. Our business loans come with great interest rates that are very beneficial to all businesses types.