Although owning your own business can be exciting, one of your greatest frustrations may be getting clients to pay on time. In particular, corporate clients who purchase your services or goods may demand that you provide them with the option of having 60 days to pay their invoices. This can put your business in a financial bind, leaving you high and dry at a time when you need to pay your own expenses. J&D Financial offers invoice factoring services to help your business to improve its cash flow when dealing with slow paying customers.
Invoice factoring essentially enables businesses to finance their receivables from customers who are slow-paying yet creditworthy. In this way, businesses can receive the immediate working capital they need to cover their ongoing operating expenses. It can additionally help business owners to grow their businesses since they can offer unique payment terms to customers without having to worry about being negatively impacted by slow payments. This is how factoring can help you deal with slow paying customers.
A few other tips can help you through the process of dealing with slow paying customers. For starters, you may want to develop a process for tracking and managing your invoices. For example, you can have a customer sign an acceptance letter acknowledging his/her satisfaction with the product or service you have provided; if the customer chooses not to sign it, you can address the matter immediately, understanding that it may be a financial one.
You can also follow up with an email or call to a client to confirm that he or she has received your invoice. Your acceptance letter can actually be included with any verification email you send. Furthermore, if an invoice is past due, call your client, but consider providing a grace period of a few days just in case the client sent his or her payment to you at the last minute. A few proactive steps, combined with invoice factoring services from J&D Financial, will ensure that you keep your business financially strong for years to come.