Small businesses can only deal with so much when it comes to unsettled or unpaid invoices owed by slow-paying clients. Working with slow-paying clients affects the working capital cycle of a business and dramatically slows the ability to grow. Sluggish payments will impact your business and if not managed correctly, could drive you out of business.
What is the impact of delayed payments to your business
The truth is that large businesses tend to relegate small businesses to the bottom of the stack when it comes to paying invoices. If you own a small business, you understand the damaging impact this can have on your ability to run your business. This can cause trouble in making payroll, paying your rent and maintaining lease payments on your vehicles and equipment. Unpaid and overdue invoices can keep you from growing your business. The challenge always lies in producing enough cash flow to keep the doors open.
Creating policies for overdue payments
When you determine a system for handling late payments you have better luck getting paid. For example, you need to make a practice of acting punctually when an invoice is overdue, even for a day. The procedure should be automatic and with software like MYOB, Xero or Reckon, you can easily carry this out, with many add-ons apps that provide automated monitoring with inbuilt alerts.
Handling clients who frequently pay late
Before payment is due, set up automatic reminders to go out weekly or biweekly. It will keep the deadline fresh in your client’s mind and automating it will make sure they don’t feel singled out. Together with this, there is nothing like ongoing communications with your clients, let them understand that punctual payment is vital to the ongoing viability of your business, that you are not a bank and that in order to continue servicing as you have you require prompt payment within your pre-agreed payment terms.Being more proactive about getting paid on time gives you more control over your cash flow, and your business’ future.
If your company is growing, you may be better off implementing a financing solution from a Fintech Financier likeOptiPay (OptiPay)
OptiPay (or OptiPay, as most refer to us) is an innovative, easy, and affordable way of helping you and your business get access to tomorrow’s cash flow today. OptiPay provides market leading and innovative cash flow funding solutions to businesses. OptiPay has its own funding to provide to businesses, having funded in excess of $350 million already, without the hassle and restriction applied by the banks.
“Get Tomorrow’s Cash flow Today”
Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
