Dave Thomas

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Don’t Let Your Small Business Leak Funds

Dave Thomas

May 13, 2016

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Do you ever feel like your small business is leaking money at the end of each and every month?

For many such business owners, the notion that their small business could be in jeopardy of going under at some point is enough to scare anyone, especially after all the time and effort invested in the company.

With that being a possibility, it is important that your small business covers all its bases, most notably when it comes to receiving customer payments in an on-time manner.

Unfortunately, some customers (reasons typically vary) will delay making payments, leaving your company to possibly find itself in a financial hole.

Avoid Late Invoicing

For starters, it is important to avoid delays in getting your regular invoices out to customers.

Whether you are the only person at your business handling invoicing (this is especially true when being the lone employee), it is imperative that customers receive their bills on time.

If you are the only employee, yet you feel like invoicing will take too much of your time, you always have the option of outsourcing such a need.

Another item to remember is that a number of your invoices you send out will be ignored past their required payment deadline. In some cases, they will be ignored altogether. When this happens, you’re left waiting on your money, sometimes leaving you in a financial predicament you certainly do not need or asked for.

In order to alleviate the financial hole to a degree, you can opt to choose an invoice factoring company.

For small business owners going this route, they can get their hands on the funds they need today, not the next day or the day after and so on.

Simply put, the invoice factoring company assures you that you will be able to access the money you need, allowing you to focus your thoughts on other important tasks for your business.

If you choose to find an invoice factoring company to work with, there are several factors to keep in mind.

To begin with, look for one that is experienced in this line of work.

Given it is your money involved here, you don’t want some fly-by-night business saying it can get you your money, only to leave you essentially holding the bag.


Customer Rapport Critical in Many Ways

Also make sure you do your best to determine what kind of rapport they have with customers.

If you think obtaining customer feedback for such businesses will be difficult, it doesn’t always have to be.

With today’s boom in social media, you can do Google searches to find out about myriad of companies out there, plus access company websites to learn more about how their business operates.

When looking at various invoice factoring companies, see what kind of following they have on social networking sites. Is the one-on-one they have with customers on social media generally good? Are there any red flags from customers that should catch your attention before possibly selecting such a business?

Another important facet in play here is making sure the service you select is up front with you on how they work, what you can expect as far as receiving your money on time, and also that there are no hidden fees to catch you by surprise.

Lastly, always look into how you can keep your business from ever going in the red financially in the first place.

Yes, today’s economic challenges are tough for many small businesses (not to mention consumers), but that doesn’t mean you have to be one of them. Collecting on debts owed you should not be a major hassle, yet you know that is not always how it works.

With a 100 percent focus on timely and proper invoicing, your small business can oftentimes avoid one of the biggest issues companies of this size face that is having enough funds available to keep the brand running smoothly month after month.

Having the capital when your small business truly needs it should always be part of your overall business focus.

When you have one less thing to worry about, notably coming up short in the money department, you have one less leak to potentially have to fix.

Does that sound good for your small business?


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