Over Spending – Having high overhead expenses such as rent, utilities, phone bills.
Solutions: Audit and cut back your expenses or consider a cheaper option.
Be careful not to cut too much, as that could also hurt the company.
Slow-paying invoices – Having a lot of slow-paying invoices and lead the company into a financial issue.
Solutions: Provide clients with an incentive to pay faster by offering a small amount of percentage discount in exchange for a payment in 10 days can motivate clients to pay quickly.
Another alternative is to use invoice factoring to finance slow-paying invoices. It improves cash flow immediately and enables you to offer payment terms with confidence. To learn more about factoring, please contact help@easyloansmalaysia.com or contact our customer service team with our live chat system.
Too much bad debts – It happens when you sell products or provide services to a client or customer who doesn’t pay on time.
Solutions: Always review the commercial credit of your clients before you extend payment terms. If you are in servicing line, collect at least 50% deposit before start working for your client.
Another alternative is to use invoice factoring to finance slow-paying invoices. It improves cash flow immediately and enables you to offer payment terms with confidence. To learn more about factoring, please contact help@easyloansmalaysia.com or contact our customer service team with our live chat system.
Low gross margins – Selling products and services for such low prices to stay survive in highly competitive environments.
Solutions: Fine-tune your product and make sure you have a good quality product before raising the selling price. Show the USP of your product and explain to your customer the reason for buying the same product from you instead of some other cheaper competitors.
Needing a low-interest rate loan to go through your cash flow issue? Click to approach us or contact our customer service team with our live chat system.
