Slow payments can cause serious financial burdens for your business. Accounts receivable financing can help your business to gain the funds it needs while you wait for customers to pay you. Here’s how accounts receivable financing can help your business.
What Can You Do About Slow-Paying Customers?
There are other options available to avoid late payments such as:
If all else fails, you can report customers to credit bureaus although this is an extreme measure and shouldn’t be done unless the customer is constantly late. Remember the aim is to convince customers to pay their bills on time so you can pay yours – not to lose customers or ruin your reputation.
How Can Accounts Receivable Financing Help Your Business?
Accounts receivable financing is a great way to gain the funding for your business that you need without burning bridges. Invoice factoring solutions let you sell your invoices to a factoring company that will pay you a percentage of (between 80% to 95%) what the customers owe you. The factoring company will then collect money from the customer, without damaging your relationships with them.
One of the biggest advantages of factoring is that it provides you a significant amount of your cash with days of invoicing your customer in exchange for the factoring fee. fee. Furthermore the factor’s process is often more streamlined than many other lenders.
Kore Capital offers accounts receivable financing solutions to solve all your cash flow problems – give us a call for more info!