Renewable energy options such as solar and wind energy are becoming extremely popular, and therefore the demand for contractors and service providers to support the industry are increasing. This has opened up many opportunities for businesses seeking to get involved in the renewable energy sector.
A factoring company can allow your organization to fill the gaps between service and payment and ensure you have a reliable, steady stream of cash flow for your business. In some cases, though, you may need to make the switch from one factoring company to another. The most common reasons for making a switch include cost and overall quality; learning more about why you might want to make a change and the steps needed to switch from one factor to another can help you make the most of the process.
Businesses in all different industries are being affected by the ongoing shut-downs. Not only has business slowed for many, but customers are taking longer to pay. Whether you are a factoring veteran or you are new to invoice factoring, you’ve discovered how it can solve your cash flow issues.
However, an advance on your receivables will only benefit your cash flow and overall business if you get to keep that cash. Unless you are using non-recourse factoring, you are at risk of having to pay the advance back to the factoring company should your customer have financial issues and not pay. Increasingly late payments are one sign of a possible impending bankruptcy.
If you’re looking into financing solutions for your business, you may be considering invoice factoring, a process that lets you collect payment on invoices immediately, so you don’t have to wait for clients to pay. Factoring has been around for quite a while but there’s still a shroud of mystery surrounding it, at least for those who haven’t researched it. One area of concern that some businesses have involves the way invoice factoring affects customers. Let’s explore some common concerns so you understand the process a little better.
For a business that depends on invoice payments rather than cash purchases, late customer payment can be anything from an annoyance to a disaster. According to some estimates, as many as 60 percent of invoice payments are late. When you have regular expenses such as payroll to meet, this can cause serious problems for your cash flow situation. The following are some tips to protect yourself from late invoice payments and enjoy better cash flow.