Unpaid Invoices? 5 Ways to Help Ensure Payment

Phil Cohen

Unpaid invoices can slow your business’s growth and cause cash flow troubles for your company. Here are some tips on how to help ensure you receive payment from customer invoices.

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Be Consistent

Having a reliable and dependable method of collecting payment is crucial. Get in the habit of touching base with your customer a few days before the invoice is due to ensure that they have all the necessary information to process payment. If the company fails to pay punctually, get in touch with them a few days after the payment is due and continue to contact them every five days or so until your business receives payment.

Double Check that Your Invoice and Sales Order Match

Be diligent in your paperwork about the order and be certain the invoice’s content is written accordingly. Some companies will refuse to pay an invoice with even one error and this will push back the clock on when your business will be paid as a revised invoice will have to be written and processed.

Establish A Relationship With Your Customers

Knowing who signs the checks for your customers’ companies in their finance or accounting departments and maintaining a relationship with them will provide you with an approachable contact should the company be slow in their payment.

Ask For Cash Up Front or a Deposit

Doing this will help ensure your payment or at least part of it is on time and eliminate the wait your business would otherwise have to go through to receive payment.

Factoring Invoices

If you can’t afford to wait for an invoice to be paid, you can sell your unpaid invoices  to a factoring company for a large percentage of the money and be paid in cash within 24 hours. When the factor receives the payment for the invoice, they’ll take a small fee from the reserve and return the rest of the money to you. EZ Invoice Factoring is a leading factoring broker that can help you find the best factoring company your business. Contact us to learn more.

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Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

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