Past-due invoices are a common headache for owners of small businesses. In addition to consuming valuable time, overdue invoices can put a strain on your cash flow, slowing down the growth of your business. Here are some ideas to handle past-due invoices — plus a tip to get rid of this problem altogether.
Make Sure There Are No Issues on Your End
First, make sure that you haven’t made any billing mistakes. Trying to collect an invoice that has already been paid or that was sent to the wrong address is embarrassing and may damage your relationship with your clients. Before taking any action, double-check all the billing details to ensure that the invoice is actually overdue.
If you don’t get a response after one week, then make a call to follow up or offer them different payment alternatives to settle the invoice, if it makes sense. Keep sending reminders every one to two weeks. If your customer fails to make the payment, then move on to the next step.
Take Action for Debt Recovery
At this point, your customer is at least one month behind in their payments and you are understandably stressed. Consulting with a lawyer is the best course of action, as it will give you a clear-eyed view of your options. If your customer has the means to pay, resorting to the courts may make sense. Otherwise, you should consider other alternatives, such as selling your debt to a collecting agency.
Factor Your Invoices
If all this sounds like a lot of work, that’s because it is. Collecting past-due invoices is time-consuming and puts an unwelcome burden on your team.
A smart alternative to head off all the issues that come with past-due invoices is to factor your receivables.
When you factor your invoices, you sell them to a “Factor,” a company that pays you immediately and then collects the payment from your customers in exchange for a small fee. It’s a flexible and convenient process that provides you with the cash you need to power your business.
ACS Factors: We Turn Your Invoices Into Immediate Cash
We are located in Upland, California, and have many clients nationwide in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
Reach out today by email (firstname.lastname@example.org) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!