Get answers to some of your top questions related to slow-paying customers and delayed payments that impact your business. If you have a question that is not covered here, feel free to call one of our representatives at +1 (205) 607-0811.
How can I prevent delayed customer payments from affecting my business?
If you are struggling with slow-paying customers, there are a few things you can do to mitigate damage to your business. Firstly, you can shorten the credit terms that you offer your customers (such as moving them from net 60 to net 15). Doing so will encourage them to pay sooner, putting cash in your bank account more quickly. If you are struggling with customers that consistently pay late, automating your invoicing process can make it easier to send them reminders to pay; however, if this is a frequent problem, you will likely still have to dedicate time to following up with these customers via phone call. If slow payment is affecting your business financially, you can get funding that aims to improve your short-term working capital, such as a cash flow loan or invoice factoring.
What funding solutions are aimed to help with slow-paying customers?
There are a few solutions that help reduce the time it takes to get paid if you have slow-paying customers. Invoice factoring, ACH loans, and working capital loans are all short-term financing solutions that can help you access additional cash to support your business if your clients take a while to pay. Additionally, you can apply for a line of credit, which allows you to borrow from a credit facility and pay it off, similar to a credit card.
Will an invoice factoring company work with my slow-paying customers?
If your customer is consistent and reliable, it is likely that an invoice factoring company will work with them. However, if your customer regularly makes late payments or has poor credit, there’s a chance that the lender will choose to not factor that particular customer’s invoices.