How Open Invoices Can Hurt Your Business

For mid-size businesses that invoice regularly, open invoices can be a pain when you are in need of money. An open invoice is one that has not yet been paid in full. There are many different reasons why an invoice may be open. It could be that a customer has terms and is not yet required to have made all of their payments. It may be open because a customer has chosen not to make any more payments, leaving your business to track them down and request payments. Open invoices can hurt your business by affecting your cash flow. You can increase cash flow with factoring your open invoices through Universal Funding.

Too late - conceptual alarm clock showing that you are too late

Cash Flow Is Necessary

Steady cash flow is a necessity for any business. You need cash to pay bills for your daily operations staff, and other expenses. Without cash flow, your business is either stuck where it is or backpedaling. Open invoices are cash you are owed, but not paid. You need that cash. Letting open invoices gather dust while you’re searching for ways to increase your cash flow does not help your company. You need to do something with those invoices.

Money You’re Owed and Not Paid Doesn’t Help

Invoice factoring helps you to get the money you are owed on those open invoices without having to wait for the customer to pay. Here at Universal Funding, we buy those invoices from you. This allows you to have the cash your business needs right away. We take over the invoice, and the customer ends up paying the amount owed within the terms you agreed upon. We also take care of sending out statements on a bi-monthly basis. You, however, get the money you are owed without having to deal with the stress of waiting and then eliciting payment from your customer.

We Can Help

We know that open invoices can be a hassle, especially when you’re in need of securing your cash flow. Contact Universal Funding today to inquire about our invoice factoring services. You can also fill out our online rate form for rate information.

 

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