If you are like most technology businesses, you often find yourself in a cash crunch due to outstanding invoices. Not only is this killing your cash flow, but it’s also creating more work for your administrative team.
Rather than waiting for your customers to pay their invoices, there’s something you can do to get your funds now. With technology invoice factoring, you can get up to 96 of your invoice in just 24 hours or less. Utilizing technology invoice factoring will allow your business to build a stronger source of capital and cash flow to help you bounce back from big orders, take on more clients, and grow larger than ever before.
Using technology invoice factoring to get paid is a great way for businesses of all sizes to succeed. Without cash in your pocket, there’s no way you can accomplish all of your business goals.
Building Better Invoices for Your Technology Business Using Invoice Factoring
To stop playing the waiting game with your customers, you need to build better invoices for your technology services. Use the following tips below to revamp your invoices and receivables to encourage your customers to make payments faster and in full.
1. Implement a Screening Process
Before you take on a new client, be sure that you perform some kind of screening. Screen your clients for a personal reference that you could contact to see past financial commitments or even run a credit check. This will help you determine which clients to take on and which to pass. Your time and money are valuable, which is something your client should understand and appreciate about your business.
2. Reread The Voice and Terms of Your Invoice
One of the most common problems that we hear from business owners is that their clients claim they didn’t understand what was expected from them. This may not be a claim. In most cases, we find that customers are flooded with invoices filled with wordy descriptions, hidden information, and limited payment options that makes it hard for customers to fulfill invoices.
Take the time to look at your invoices as if you were an outsider to your business. Treat the invoice as if it were your own and ensure that the most important details are communicated clearly. By using simple, yet descriptive language, your customers will be able to completely understand what is expected from them.
3. Start Issuing Late Fees
One thing to consider adding or highlighting on your invoices is the payment terms. If not already listed, ensure that you spell out some form of late fee. Not only will this put the pressure on your clients to make their payments, but also bring in additional revenue.
How Invoice Factoring Can Help with Invoice Management
Be sure that you give reasonable deadlines for your invoices and send out reminders. Your clients are just like you—they’re busy! In some cases, your clients can forget about their invoice with your business. Rather than surprising them with multiple late fees, get to them before the late fee does. This will show that you truly care about your clients.