Managing your business finances can be stressful if you do not know how to carefully keep track of your revenue, expenses, and accounts receivable loans to ensure a positive cash flow at all times.
Tips for Managing Accounts Receivable Loans
- Implement mandatory down payments
It can be difficult for small businesses to stay on top of expenses when they are waiting for a large number of invoices to be paid at one time. Invoices normally provide a minimum of 30 days before the total amount is due. To ensure your business is never without cash on hand, you may want to consider implementing a mandatory down payment for large invoices.
- Create a late fee policy
There is a common misconception that late fees will drive potential customers away. While a no late fee policy may be enticing for some customers, it will also make it far more difficult for business owners to create a reliable financial plan and ensure they have the finances available to cover expenses. Businesses should follow legal guidelines by making every customer aware of their late fee policy before a purchase is made.
- Use invoice factoring for immediate cash flow
Invoice factoring offers small businesses a stress-free solution for turning invoices into cash in as little as 24 hours. Businesses can sell their invoices to a financing company such as Camel Financial and receive as much as 90% of the total amount. This is a great option for businesses that do not have the flexibility to wait for customers to pay their invoices over extended periods. This is also an option for businesses that prefer to operate with a no down payment policy.
- Hire a professional to manage your accounts receivable loans
Opting for a business cash flow loan is a major financial decision for businesses of all sizes. This can be daunting if you do not have a professional to assist you with your financial planning and receivables management. At Camel Financing, our accounts receivable financing solution includes management support from our experienced team.
Are you looking for a reliable financing solution from a reputable company that can support the needs of your small business? Contact us today to speak to one of our friendly representatives about your financing options!