During our time in business, it is inevitable that you will have late payers who just drive you crazy!
The actions of these few customers who are late to pay for their invoices put your entire cashflow at risk, meaning that you may not be able to finance your regular monthly purchases for business basics such as stock, wages and rent.
If this toxic customer behaviour patterns continues for a considerable period of time, it is an ideal time for small businesses to look for sources of alternative capital to resolve cash flow problems. This solution could come in the form of unsecured business loan finance, where the invoice payment gap can be quickly erased. Most unsecured business loan providers can provide funding in approximately 24 hours, and can send finance well over $100K.
This short-term solution, also known as invoice funding, is a much better alternative than seeking the assistance of more focussed channels to recoup your funds. These alternatives involve either engaging the services of a debt collection agency or a solicitor (when the age of the debt is 60 days plus). Both of these types of “last resort” providers are not ideal for everyday business operations. It is highly likely that your customers may become upset by their presence, even though they are the ones selling you short! In addition, you will waste much needed capital from your business engaging these types of companies, who both have high fee structures.
To best handle the ebbs and flows of customer invoicing, accessing unsecured business loans is a much more secure strategy to smooth out any cash flow issues. When smart business operators can move to pre-emptively deal with these late payers, the positive benefits to the business will be substantial.
Additionally, this unsecured business capital can be used for other purposes within the business. The loan can fund expansion through careful and deliberate investment, help you grow your presence into new markets, or assist in the purchase of more efficient business equipment.
If you’re looking to get your business set-up with a quick and simple loan solution to get you growing, talk to Unsecured Finance Australia about how we can help you meet your business finance needs.