• The company is changing locations. It’s expensive to move, so you need to look at the reasons behind it. Is it a smaller location? If so, that could point towards financial problems resulting in downsizing. If it’s a bigger location, that could be a good sign. Financing expansion is often at the expense of companies that the company deals with.

• The company is laying off workers. The cause of this is usually financial problems. You may notice that an employee you usually deal with has disappeared. This could be a sign that he or she has moved on to a more reliable workplace before the company goes out of business.

• The business is being sold. Usually, a business is only sold when financial difficulties are being experienced. When the company sells, collecting on overdue invoices becomes harder than ever.

• Personal problems. If your client is running a small business, problems could take priority over overdue invoices. Problems such as marital difficulties or an illness,

• Excuses. You may here, “We can’t find the invoice.” “The invoice isn’t approved yet.” “The person responsible for signing checks isn’t in the office at the moment.” This could be a subtle indicator that all isn’t right at the client’s end.

What to Do When You Spot A Red Flag?

How to Improve Chances of Payment

One of the best ways to improve the chance of payment is to put in place a B2B online payment processor. This makes the process of paying for goods and services a lot simpler and more convenient. Use An online payment portal that accepts many payment methods. A portal can make the difference between receiving payments on time and having to chase nonpaying customers. Also, put in place the facility to take payments over the telephone. During collections, telephone conversations will help to improve cash flow with real-time authorizations. This way you don’t have to rely on waiting for the client to write a check.

Call the Cash Flow Group today with any questions or concerns you might have. We look forward to hearing from you!