Generating invoices is not good but sometime if your clients
are taking long time in paying bills then invoices are required. This can
affect your business. The trend of collecting account receivable is increasing day by day. Agencies are buying invoices which are not yet been paid.
You
require these agencies when you need your money back to pay your payroll
employees and to cover expenses for your company. Factoring agencies refuses to
take projects from unpopular brands. It is very difficult to collect money from
such cases so they take responsibility of invoices in case of well known, well
established companies that have plenty of cash but are simply slow in their
paying process.
If you
got late payment from a long term clients, so it’s not a good idea to take
legal action for payment. Inform your client in neutral way, you can say
politely due to company policies if bills are not paid on time it will go to
factoring agencies. If you don’t want to break relation with clients first deal
with patience.
Factoring is selling your accounts receivable invoices to a factoring company at a discount in exchange for immediate cash. And, like a Load Advance, you can qualify for factoring even if you don’t qualify for traditional financing…because it’s based on the creditworthiness of your customers.
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