Do you have sleepless nights thinking about the payment that you have yet to receive form your clients or customers? Does your A/R aging report weigh heavily on your mind? Are you finding it difficult to pay your employees and business expenses as you don’t have enough funds due to outstanding payments?
Unfortunately, you are not alone as most small businesses and freelancers have experienced a delay in payment from their clients. A 2011 study by the National Federation of Independent Business reveals that nearly 40% of firms are agreed upon the fact that ‘receivables’ are coming in at a slower pace. A report by the Freelancer’s Union confirmed that 40% of freelancers report having had trouble collecting unpaid wages, and of that number, 83% said they were paid after the agreed-upon time—an average of 52 days late.
So what is the solution?
Small businesses and freelancers are relying heavily on incoming funds to finance outgoing payments. Since small firms depend on credit for their daily existence, owners of small firms do have a reason to fear about their aging receivables.
ZenCash, a Dallas-based start-up has introduced a new solution to help small businesses get payments from foreign buyers without any hassle. ZenCash solution will enable small business owners to keep their invoices top-of-mind with their customers- so that they can pay more attention to write successful business stories rather than chasing their clients for collecting payments.
ZenCash can be linked to invoicing applications, including QuickBooks, Freshbooks, Blinksale and others and allows business owners to create an ‘action timeline’ or schedule for payment. Here, business owners can also choose the mode of communication (e.g., printed media, phone calls, text messages, etc.), the frequency of contact (e.g., 10 days prior to due date, 30/60/90-days after, etc.). This solution enables them to customize the language of message content and tone with clients.
However, if you have not received payment on time, then ZenCash will help you to get paid. ZenCash has teamed up with United Recovery Systems, one of the nation’s largest collections agencies, and provides collection services.
There is no subscription fee for ZenCash and you only pay for the services you use.
There are, of course, some steps that you can take to protect yourself and ensure payment. It is always advisable to sign a contract (though it is not a guarantee that you’ll get paid) with your client before you shake hands with them. A contract can make your case stronger, if you contact a collection agency or an attorney for delayed payment collection. You can also elect to receive payments in installments when you reach milestones for large and multi-week jobs.
Trying to collect payments can be extremely costly in both time and effort, but thankfully there are services out there that can help you to streamline the process, so you can spend more time concentrating on growing your business versus sustaining it.