Slow-paying invoices are a common cause for cash flow problems. As a supplier, the clients ca pay your invoices in 30, 45 or more days. However, small and medium size suppliers can’t always afford to wait this long for payment. They need money sooner. Eventually, slow payments create a financial problem that can seriously affect your business even if it’s growing quickly.
Solution
There are two ways to solve this problem. One solution is to provide clients with an incentive to pay faster. Offering a 5% discount in exchange for a payment in 10 days can motivate clients to pay quickly. However, this incentive sometimes is not accepted and also is very expensive.
An alternative is to use invoice factoring to finance slow-paying receivables. This method improves cash flow immediately and enables you to pay all your expenses including payroll with no stress. To learn more about factoring give us a call at (855) 358 8258. We will be happy to answer your questions and send you an application. There is no fee to have us review your application and receive a proposal.