If you are a business owner that frequently deals with other companies, you are already aware that these dealings don’t always turn out the way you expected them to. This is particularly the case with regard to getting paid on outstanding invoices. When you provide goods and services to a client, it’s standard operating procedure to issue them an invoice that describes the nature of the goods provided, the amount of the charges, and the time you expect to be paid by. By accepting the goods you deliver, they also accept the responsibility of paying for these goods in a timely manner.
What Can You Do When A Client Refuses To Pay Their Invoice?
Unfortunately, it doesn’t always work in such a smooth and efficient manner. Even when they are forced to admit that they are completely in the wrong, there will always be some clients that will use every means in their repertoire to avoid paying you in a timely fashion. No excuse is too pathetic, too outlandish, or too transparent for them to put off paying up, and they are banking on the fact that you won’t do anything about it. If they find themselves pushed into a corner, some of them will even fall back on bankruptcy proceedings in a last effort to avoid paying the money they owe their creditors.
How Do Unpaid Invoices Affect Your Personal And Business Life?
There are a number of ways in which unpaid invoices directly – and negatively – affect both your personal and your business life. Like many small business owners, you may have a great deal of your personal capital tied up in your company. You may have taken out a mortgage on your home in order to raise the money required to start your new venture. When clients refuse to pay their invoices, you lose income that is required to pay your bills. When your business begins to run into trouble making its overhead payments because of these unpaid invoices, this is obviously a source of stress and worry.
Where Can You Turn To When The Bills Are Piling Up?
As the mountain of unpaid invoices continues to grow higher and higher, your profits will suffer as a direct result. And this is the worst part of it all: The blatant unfairness of being saddled with mounting debt that threatens to take your business and a fair amount of your property away, all because your creditors refuse to pay the money they owe you. In such a dire situation, you may think of turning to a bank or a lending center to get the cash you need to pay your bills and get you through this rough patch. But this would be a serious error. As it turns out, you can deal with a factoring company instead.
Is There A Way To Raise Money Without Taking Out A Bank Loan?
A factoring company, such as Factor Finders among many others, is the best possible alternative for you to make use of instead of a traditional lending source. Instead of going to a bank or, worse, a predatory “quick cash loan” or “pay day lending” institution, you can get the money you need from a factoring company. Best of all, you don’t have to provide collateral, such as your home or car, and you don’t have to prove that you have an exceptional – or even marginal – credit record. None of these usual requirements are needed by a factoring company, simply because there is no loan involved.
Why Is It Better To Deal With A Factoring Company Than A Bank?
As mentioned above, dealing with a factoring company is a far better deal for you than going to a bank or a pay day loan center. Instead of waiting weeks to hear back from them regarding the success or failure of your plea, you can cut a deal with a factoring company and get quick cash within 3 to 5 business days.
All you have to do is turn over your outstanding invoices to a factoring company, and let them do all of the tedious collection work. Once the amount of the invoices is collected, you will receive a payment from the factoring company, minus a small fee for the work they have done for you. Factoring is an excellent way of taking care of unpaid invoices that results in a win/win situation for everyone.
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news and distribution to create an unparalleled, full digital medium and social business network spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems.