If your business is like many other services, January is a very slow, financially challenging month. After the Christmas holidays and increased December spending, most consumers are using the first month of the year to pinch their pennies and pay off the debt they accumulated during the most festive month of the year.
Every company or contractor has their own money matters to deal with. While paying bills is a priority, services must wait until they have the money in before they can reimburse the invoices they owe others. Larger businesses also must go through protocols and different departments to get remittance for any bills owed. For the entrepreneur waiting for that payment, this is a stressful process that only delays their financial obligations.
Taking invoices to a certified statement purchasing company can help alleviate the stress of waiting for the funds to come in. There are many benefits to utilizing an invoicing agency during the slow season including:
1. Pay Overdue Bills Immediately
As a business owner, the lack of revenue can be hard on the bank account. While seasonal staff might be finished, they still need to get paid for their final hours of employment. Permanent staff also need their paycheques, bills need to be paid and inventory needs to be restocked.
There might be less money coming in, but there is still a lot of money going out. Waiting for invoices to be paid adds to the stress because it further reduces the income flow.
Going to a professional invoice factoring agency can resolve many of your immediate money matters. By taking your unpaid invoices to a service, you can get paid immediately for the statements, rather than wait weeks or months for the money to come through.
2. Pay Bills on Time
The bills continue to come in whether the money is there to pay for them or not. Not having the available funds to cover the monthly expenditures can be very stressful. Accessing the funds now to ensure the money is there to cover the regular expenses will relieve the burden.
3. Pay Your Staff
Staff deserve to be paid on time, but when the money isn’t there, business owners must try to find the financial resources to cover the payroll. Rather than take out a loan or leave employees unpaid, breathe easy knowing you can give your employees their earned income.
4. Prepare for the Next Season
After the holidays, many corporations find they are low on stock, or needing to purchase new merchandise for the upcoming season. The early months of the year are the prime time for checking your inventory and replenishing stock. Waiting for monies to come in to purchase the new inventory can create added problems and have a negative impact on your business operations. Rather than leave it to the last minute, start planning for the next business boom now.
5. Develop Marketing Campaigns
Slow seasons are a great time to review your business plan and develop new marketing ads. However, these campaigns often require funds to create the materials needed to promote your services. Because marketing campaigns should never stop, waiting for the cash to pay for the ads can result in loss of business. Rather than take the risk, continue with the corporate promotions so your business will grow and prosper.
Lack of funds during slow service seasons can be damaging to your business in the short and long term. Rather than face the risk of losing business or falling behind in monthly bills by waiting for invoice payments, taking your due invoices to a professional service will guarantee that your company will still be able to operate properly.