For when that guy doesn’t plan on paying you back, for a while
By: Leah Virzi
Slow paying customers. They’re inconvenient. Especially when they owe you a large sum of money.
But what exactly is a “slow paying” customer?
Well, just say you own a construction company and you finished laying down a huge concrete patio for the hottest bar in town. The owner gave you a down payment, covering a third of the cost initially, but they still owe you a LOT of money. You have called, and even gone in, but for some reason, they are ignoring you, or they are claiming that they “just don’t have the money, right now.” That guy, he is our “slow paying” customer.
This can be very problematic, because you still have a payroll to take care of, as well as payments towards other vendors you may have borrowed from. While scrambling, and finding out that it may be about a month, or longer, until your client pays you for your service, you don’t know what to do.
But fear no more, because there is a solution to the stress you, and many other business owners, are experiencing. This solution is called invoice factoring.
Invoice factoring essentially frees up cash flow when you are going about 30-90 days without receiving payments from your invoices. Once you send in the number of your invoices and monthly revenue, we will be able to assess pay terms. These terms can come in every 15 to 30 days. The funding in these terms are usually between 70%-95% of the gross value of your total invoices, depending on what will fit your company’s needs at that time. This will then allow you to have a steady cash flow that you will be able to use to cover your payroll, pay your vendors, and expand your business. Upon finally receiving payments from your invoice, we will be notified, and we will then send you a notice reminding you to pay back your outstanding balance with us.
The application is shorter, easier, and quicker to assess than a loan. It is also funding tailored to your needs at that time; which you can then repay shortly after the invoice payment comes in. It is a type of funding that can allow you to keep your business afloat and relieve the stress of not knowing when your next paycheck will come through. So, stop worrying about that guy that’s taking forever to pay you back, because there is a solution that is literally just a phone call away.