When you own a business, it’s often necessary to take out loans to cover day-to-day expenses, like ordering inventory and payroll. However, with bad credit, the process can become much more complicated. Many traditional lending institutions, such as banks, will be less hesitant to lend to those with bad credit, making it much more difficult to find loans with reasonable rates.
However, there are options like bad credit business loans available. But the best way to ensure your business has all the cash flow it needs is by avoiding bad credit altogether, so the team from Camel Financial has collected some tips for you here.
Send Out Prompt Invoices
One way to ensure that nothing is overlooked is to always send out your company’s invoices promptly. Also, follow up quickly on late payments to make sure your clients understand how important prompt payment is for your business.
Have Clear Terms & Conditions
Having your terms and conditions communicated as clearly as possible will ensure there’s no confusion during the payment process with your customers. Write up concise contracts with the help of legal aid to make certain that clients know exactly when and how they’re expected to pay for your goods or services.
Document All Your Transactions
Keeping detailed records of all your company’s transactions makes it more difficult for things to fall through the cracks. Collect data on shipments, payments, and invoices and if you’re having an issue compiling them, consider investing in a new billing and invoicing software system.
Consider Invoice Factoring
Invoice factoring is one way you can avoid issues with debt. This is because you’ll be able to receive cash from invoices immediately by factoring them through a third-party company. Camel Financial offers accounts receivable financing solutions designed to give you the money you need to perform your company’s daily operations.
Use Multiple Touchpoints to Collect Late Payments
Some people respond better on email—others on the phone—so try using multiple methods of contact to collect on late payments. This way you can be sure your clients know that they have a payment due. Additionally, make a note of the methods your clients respond to best and keep that in mind for the future.
Let us help you obtain a bad credit business loan!
If you’re struggling with some of the steps mentioned above or you have bad credit, don’t despair, we can help. Contact our team today to learn more about your financing options or call (949) 722-7717.