If you're finding your customers are taking too long to pay and it is creating cash flow headaches it could be worth investigating invoice factoring. This is when a third party pays you immediately a percentage of your invoice (around 80%), they then collect the funds from your client and pay you the balance less a commission once the client has paid.

This way you are getting paid as soon as you finish the work, keeping your cash flowing and not having to worry about chasing overdue debtors. A couple of NZ businesses we found that provide this service that could be worth exploring are

http://www.cashflowfinance.co.nz/

http://www.workingcapital.co.nz/

You could even adjust your prices a bit to help cover the commission – therefore keeping the overall costs down.

Posted 15/01/2015

Like to make your accounting and tax super easy and affordable? We'd love to work for you! Get a Quote!