It’s bound to happen sooner or later: A client doesn’t pay their invoice, or they pay, but days or weeks or even months late—longer than the small business would prefer, given their financial commitments and related expenses. There are tricks you can use to try to make sure that it doesn’t happen often, but you can’t avoid it entirely. And even if you have systems in place to keep clients accountable, if you have collections on the job right away, if you are charging fees for delinquent accounts, even if you do everything in your power to make sure that you get your money, late-paying client problems can still spell big trouble for a business.
Cash flow is the heart of any business, and your cash flow projections are based on the assumption that you’ll be paid what you’re owed in a timely fashion. If clients don’t pay up, or don’t pay on time, that throws off your budget, which can throw off your whole operation in a flash. Here are a few suggestions to avoid late-paying client problems:
No matter what you do, though, sooner or later you’re bound to deal with clients who don’t pay, or don’t pay on time. It’s just a part of doing business. Fortunately, just because the client doesn’t pay up on time doesn’t mean you necessarily have to end up looking under couch cushions for the money to keep your business going.
Ask yourself this: What could you do with cash in your hand for your invoices in as little as 1-2 days? Receivables factoring can turn your cash-flow problems into cash flow solutions. By selling your unpaid client invoices to a receivables factoring company such as QC Capital Solutions, you can turn unpaid invoices into the quick cash you need, when you need it, so that you can put your attention back on the important job of running your business.