Freelance Design Invoice If you supply your current product or service to other businesses plus they don’t pay you for thirty to 90 days it can become extremely difficult to manage your cash flows. When you add in growth to this circumstance cash flow management becomes even more complicated. Due to the delayed payments, your own personal costs increase faster compared to revenues coming in. Lets take a look at a simple example. You own the staffing agency and you property a new large customer which will double your sales. The brand new customer will pay you sixty days after your temperature ranges complete the work. Your gross sales just doubled and so do your costs. Payroll cannot wait for 60 days, your own employees need to get paid promptly or they will go somewhere else.
Cost immediately double however, you do not see an increase in income for 60 days. This can be a major hit in your money flows and you need entry to working capital immediately or you will not be able to make payroll. The answer to your problem could be inside factoring the invoices.