Protecting Your Business, and Your Bank Account, in Case Clients Don’t Pay (Published 2016)

Consequently, a business may be short of cash until payment is received.

“My company provides financing for very small business owners who are turned away by banks. Instead of providing loans, we purchase our clients’ invoices for immediate cash which enables them to meet payroll, pay bills, accept larger customers, and many other business necessities.” 2. “My business supplies something every company needs: money! Our

Deferring or negotiating a longer repayment period with your creditors can also help alleviate a cash crunch.

•To add insult to injury, if a customer does pay its bills to the business and then files for bankruptcy within 90 days of that payment, under the “Preference Payment” rules, the trustee overseeing the proceedings might seek court intervention to return that cash payment to the debtor’s estate. In short, even after a business gets paid, the cash pa

Instead of chasing non-paying customers after the fact, wouldn’t it be better to assess that risk up front and decide if you even want to accept that sale? We tell our clients, “We’re glad to have your business. These are our payment terms. If you don’t pay us in 30 days, we’ll charge you 2 percent of the outstanding invoice.” You don’t become succ

Entrepreneur: My average account in the disaster restoration business was ninety days overdue. That’s one of the reasons I’m not in that business anymore. Greg: In the disaster restoration business, you often encounter disagreements with insurance adjusters, and then the average turnaround on accounts receivable (A/R) is about ninety days. To survi