Standard business practices dictate that companies that issue invoices to customers must have staggered payment schedules so their customers have a period of 30, 60, or 90 days in which to remit the balance owed. In theory, staggered payment schedules create a constant stream of revenue while also giving customers time to test out the products and services they have purchased. The reality – especially in today’s economy – is much different, and everything indicates that staggered payment schedules should be considered a thing of the past.
1. Everything is Faster
Staggered payment schedules may have worked 20 or 30 years ago, but today, everything is happening much faster. Large purchases, banking, and commerce in general does not take months – everything can happen with a few taps of the finger on a smartphone or tablet. With all of the technological factoring advancements, the business landscape has changed, and businesses should not have to wait a month or longer to receive payments for transactions that were made in the span of a few seconds.
2. Staggered Payment Schedules Hold Businesses Back
Hiring employees, upgrading equipment, moving into larger facilities, mergers, acquisitions, and more all take capital. When revenue is staggered, many plans need to be scaled down or simply put on the back burner. Eliminating staggered payment schedules would allow businesses to reach their full potential and reach major milestones.
3. Reducing the Need for Debt-Based Loans
Staggered cash flow means businesses may not always have the capital on hand to take advantage of growth opportunities. Similarly, businesses may struggle to make payroll and cover basic expenses when revenue is locked behind unpaid receivables and staggered payment schedules. As a result, businesses are forced to take on debt through loans in order to grow or to rightsize operations. Eliminating staggered payments would help businesses to thrive without the burden of debt.
Solving the Problem of Staggered Payment Schedules
New Century Financial is a leading invoice factoring business that specializes in eliminating staggered payment schedules by turning unpaid receivables into cash within 24 hours. We help businesses achieve their potential and about debt-based loans. To eliminate staggered payment schedules and accelerate your cash flow, contact New Century Financial today!