Coping with Paying Your Bills

Coping with Paying Your Bills Have you been receiving "late payment" or "missed payment" notices and charges on your business credit card accounts lately? If so then it may be time to listen up and make some changes.

If you are a small business owner or an entrepreneur you might find it difficult to pay your own bills because you never know when and if people will pay your invoices on time. You probably have little money in the bank and you are not likely to get a loan, especially given today's economy.

If you have been late in making credit card payments lately, you do not have to worry about creditors reporting late payments to the credit reporting agencies unless they are more than 30 days late. Your payment missing the due date by a few days or a couple weeks will have little effect on your credit score.

The late payment fees are sometimes more than what you are charged in interest for the month, which can be the equivalent of paying from 30 to 100 percent in penalties.

In order to avoid this problem it is imperative that you get organized and choose a strategy below, then stick to it. If clients are not paying you on time and you need some cash, think about accounts receivables or invoice factoring. Tips include:

1) If possible, pay your bills the same day they arrive in the mail. 2) Mark a calendar with due dates for credit card bills and other accounts in bold ink. Now, go back two weeks for a mailed payment or four days for an 3) Determine what time of the month is best for you to pay your credit card bills and contact your creditors and ask that your due dates be changed to that time of month. You will then avoid confusion over multiple due dates. 4) Watch your statements carefully and always keep records. 5) If you are not being paid on time, think about how many bills you could pay on time if you just had some money in reserve. 6) Begin doing single invoice factoring every month. This helps by providing companies like yours with immediate working capital, allowing you to increase your revenue - because with increased cash flow you can accept more purchase orders.

Simply choose one invoice. How can this help? Single invoice factoring comes in especially handy when a client is on a 60 or 90 day pay cycle, and you can get up to 90 percent of what they owe you ... early. Factoring companies getsinvolved after the product or service has been shipped or delivered and an invoice is produced. You will typically get the money in 24 hours and the rates are competitive. There are no minimum sales volume requirements. Clients use the service only as needed, plus there are no maximum limits.

After you have tried accounts receivable factoring, you will know just how easy and convenient it is, and that you can rely on it for fast cash.

About the Author:

Kristin Gabriel is a writer who works with The Interface Financial Group, North America's largest alternative funding source for small business. The company provides short-term financial resources including invoice factoring and serves clients in more than 30 industries in the United States, Canada, Australia and New Zealand. IFG operates on a local basis with expertise in accounting, finance, law, marketing and banking. www.ifgnetwork.com

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