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One of the main bugbears that can plague a small business and cause it to falter or fail is the issue of unpaid invoices. If you are in the kind of business that requires you to deal with other companies, you will naturally invoice them for the goods and services that you provide on their behalf. There will also be a specified amount of time, usually between 30 and 90 days, during which you expect to receive payment on this invoice. This is the accepted manner in which thousands of businesses all over the world bill clients for their services. On the whole, it’s the best way to handle these arrangements.
What Can You Do When Clients Refuse To Pay The Money They Owe You?
Unfortunately, while most of your clients will respect the arrangement and make their payments on time, there will always be one or two that are unwilling or unable to meet their obligations. They may plead dwindling income, or the pressure of debts they have incurred in other areas. They may ask for an extension on their invoice. In some cases, such an extension may be justified. In other cases, it may be a transparent lie that buys them time to file for bankruptcy, thus cheating you, at least temporarily, out of the money you are owed. But what can you do when clients refuse to pay the money they owe?
Is There A Way For Your Business To Raise Cash Without A Loan?
If your small business is currently experiencing severe financial trouble as a result of the accumulation of unpaid invoices, you may well be wondering if there is a quick and secure way out of this dilemma. All too often, a small business owner will run to a bank or other lending institution (such as a predatory “pay day loan center”) because they simply don’t know any other way of getting the cash they need to keep their doors open. But this would be a huge mistake for you to fall into, and there is simply no need for you to even consider it. There is a better way for you to get the cash you need.
A Factoring Company Is Your Best Solution To Get Quick Cash
If you have never heard of accounts receivable factoring, now is the time that you need to get yourself up to speed on just what this arrangement can do for you. Dealing with a factoring company can get you the fast cash you need to keep your business running in a smooth and efficient manner. And it has nothing at all to do with the way that a traditional lender works. You don’t need to provide any collateral, and you don’t need to incur interest on any loan – because there isn’t any loan. A factoring company buys up your outstanding invoices, pays you for them, and recoups its money from the debtor.
Get Off The Hook And Make Your Debtors Pay What They Owe
This is the very best feature of working out an arrangement with a factoring company: It gets you off the hook and makes your debtors pay what they owe. All you have to do is turn your outstanding invoices over to a factoring company and let them collect the amount that is owed. After the amount is successfully collected, you will receive a payment in cash that has been agreed upon in advance. The factoring company will naturally collect a small fee for their trouble, but the payment you receive can be processed within 24 hours. It’s a far better arrangement than a bank loan.
Factoring Frees Your Business To Concentrate On Profits And Growth
Factoring your outstanding invoices frees your business to concentrate on profits and growth. With the money that you receive by getting rid of your unpaid invoices, you can expand your business infrastructure or hire several new members of your company team. You can set up a whole new line of goods or services, or take the money and purchase more advertising space on social media networks.
The list of possibilities is endless, and it comes courtesy of making an arrangement for your unpaid debts that gives you quick cash instead of headaches over how you’re going to pay the interest fees in the future. If you’re looking for a quick, easy, and painless way to get rid of unpaid invoices, contact a factoring company today.