In the life of Mark Tull, you work, you charge, they pay. It is the natural order of things – or it should be. It is easy to expect that, in any reputable business, the receivables you have lined up for your services and goods will eventually result in revenue and cash flow. Many businesses rightly focus on offering the best products and services at competitive market prices while growing their brand, to ensure their business is successful. They see slight delays in payment as unavoidable and negligible in cost to the business. But there are significant risks to your business that can be caused by problems with receivables. Luckily, there are also significant solutions provided by expert firms. This step-by-step guide will show you how such firms can help you navigate such problems.
You wait for an invoice
Firms such as Close Invoice Finance can step in when these delays in payment become unmanageable. Imagine you run an SME and your business is booming. Yet despite your assets, you carry a degree of debit and so are unlikely to be able to draw upon a reliable line of credit. When your receivables suddenly become delayed, to the point you are struggling to maintain the payments your expenses require, let alone think of the growth that your booming sales warrant, these firms are the solution to turn to.
You don’t have good cash flow
Because firms like Close Invoice Finance are experts in cash flow management they can not only assess the problems you have, they can also provide a unique solution. Late payments can be frustrating and cause a problem with your cash flow because, despite the fact that you may have pieces of paper or online notices declaring that money is owed to you, the timing of when that money will arrive does not serve your business plans and processes.
The firm uses your invoice as collateral
At this stage, after you have become aware of the cash flow problem caused by late payments, companies such as Close Invoice Finance can step in with payment solutions. One of their most successful strategies is assessing the amount of receivables that you have owing to you, then fairly and quickly providing you with the finance you need. They are effectively allowing you to borrow against the money you have owing to you.
The firm buys your invoice
A second and very similar strategy that Close Invoice Finance, and firms like them, will employ is the use of factoring. This effectively constitutes the firm buying your receivables from you and managing them as their own. In this way you can sell your products and services and then, instead of waiting for payment, hand over that responsibility to these firms in return for immediate liquidity you can use to pay your expenses and invest in growth.
Mark Tull Money 