Yes, talk to your bank and local regional banks about factoring your invoices. You basically sell them your AR for a percentage. They pay you now and the clients have to send their payment to the bank instead of you. It comes off a little shifty to customers who will get contacted by the AR team to reroute payments but if you communicate it in advance and explain why you’re doing it most clients will understand. Alternatively you can offer 1%net5net30 terms to your customer where they get a discount for paying you early. Often cheaper than factoring and works great if your partners are cash heavy. You can change the numbers to whatever makes sense for your business (5%net0net30 for example).
Discussion
That’s a great strategy… assuming they can also set it up with their cfo on accrual basis it could be a no brainer since I’m 100% a tax write off for them… great advice! Super grateful for this 🙏
Hope it works. I used to include a discount on all my invoices when cash was tight for early payment.
I ironically drafted up a plan a, b, and c with discounted terms with the clients earlier for up fromt pymt and will have all available when we meet this week… fingers crossed. Gunna lock it in.