A late invoice can grind everything to a screeching halt. It’s why you go out of your way to make sure it doesn’t happen.
You’ll write down a slightly longer clause in your contracts about paying on time. You’ve thought long and hard about how large your late fees should be. When that’s still not enough to get your clients to pay on time, it’s time to talk to lenders about working capital funding strategies. You work hard enough without having to juggle late payments alongside all your other tasks. Accounts receivable funding is a reliable way to make sure you’re still hitting your minimum, each and every time.
Reduce stress. Keep your hard-earned money. Let’s take a look at how accounts receivable funding works.
Small Businesses Are Becoming More Common In The United States
It’s no small wonder why more entrepreneurs are seeking out a good invoice service. Small businesses (defined as a business with less than 500 employees) account for over 95% of all businesses in the country. That’s nearly 30 million small businesses that are struggling with the frustrating issue of unpaid invoices. According to recent data by Kauffman, around 40% of all new entrepreneurs in the country are women. The number of new women-owned businesses are growing at double the rate of male-owned businesses, to boot.
Cash Flow Problems Are The Number One Barrier To Success
What keeps a small businesses from truly reaching incredible heights? Rather than poor marketing efforts, cash flow problems remain the biggest barrier for most small businesses today. According to a U.S. Bank study, up to 80% of businesses fail because they can’t maintain a consistent cash flow. An interesting estimate was released gauging how much better businesses would do if money was paid on time. It found that, if all invoices came in on time, small businesses could hire up to two million more people and lower unemployment by 3%.
Invoices Are A Troublesome Wild Card With Long-Term Consequences
As you can plainly see, late invoices have a huge impact beyond even your business. Sometimes it’s not enough to add a hefty late fee to the mix, either. This is where working capital funding strategies come into the mix. Learning how to factor invoices is best done with a professional by your side, an experienced lender who knows the ins and outs of this convoluted system. Not only can they help set up your account, they’ll make the art of invoicing a breezy, automated system.
You Don’t Need A Personal Credit Score To Qualify For Help
This is one of the major reasons why more small businesses don’t reach out for working capital funding strategies. Contrary to popular belief, your personal credit score will not necessarily disqualify you for funding receivables help. While a personal credit score ranges between 300 and 850, business credit is scored between 0 to 100. According to the Wells Fargo Small Business Index, the average amount of startup capital needed for a small business owner has remained at $10,000. Even if you have doubts, it never hurts to talk to an invoice expert.
Invoice Lenders Can Help With On-Time Payments
You may be an entrepreneur working in the art of independence, but that doesn’t mean you don’t need help. Invoice factoring is a type of accounts receivable financing that will convert all outstanding invoices due within 90 days. This means immediate, reliable cash for your small business so you can focus on work, not on stress. Learning how to choose a factoring service means talking to professionals who care about what you’re trying to do. Ask them about their work experience and how they can help you be the best you can be.
No more struggling with late invoices. Implement working capital funding strategies into your small business plan so you can finally move forward.
