When your clients don’t pay on time, your company’s operations can be delayed or even hindered. Companies thrive on their ability to make their products or provide their services. This can’t happen if the company lacks the access to working capital. Freight factoring, along with these other tips, can help you solve the problem of late payments.

Client Background

Before working with a client, be sure to do the proper research. Find out how your clients have interacted with suppliers in the past. Conduct credit checks so you can have an idea of how reliable your client is. Your background research might not guarantee a successful relationship with the client, but this is the first step.

Terms & Expectations

Be sure to clearly state your company’s terms and expectations for payment. Define the terms for invoices and receipts. Reiterating expectations is also a good idea. Keep a written record of your company’s terms and expectations so you can reference them when payment is made outside of those terms.

Bookkeeping

Managing your books is just as important as managing your truck fleet. You won’t be aware of late payments if you don’t constantly manage your books. Make sure you devote enough time to bookkeeping so there aren’t any breaks in your company’s cash flow.

Collection Method

The most effective collection method is an automated system. Your company should have an automated process for payment collection. Automated systems save time in your company’s administrative office. They also create a consistent flow of communication between your company and its clients. Automated notifications and reminders through email or a mobile device can keep your clients aware of the payments that are due.

Freight Factoring

Working with a freight factoring company completely takes away the inconvenience of late payments. Your company no longer has to chase after clients or send constant reminders. The freight factoring company manages your collections. Freight factoring will give your company access to working capital, so your company’s daily operations won’t depend on whether your clients pay on time or not.

Solve the Problem of Late Payments

Corporate Billing can help solve the problem of late payments. We can give your company the access to working capital that it needs to thrive. Contact us today!