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Preventing Late Payments

Preventing Late Payments

Customer not paying? Find out why.

There could be a good reason why your customer hasn’t paid on time. Maybe they’re not happy with your work, in which case, this is most likely to be because they didn’t fully understand what you were (and weren’t) offering to do for them, or because there were delays that were unavoidable or created by the customer themselves.

Talking to your customers and finding out the reasons for non-payment should sort things out. And in the future, make your sure quotes and terms and conditions are crystal clear so you and your customer both know exactly where you stand.

Protect yourself with staged payments.

Asking for payment in two or more stages will help preserve cash flow whilst you’re working on larger projects. Where appropriate, you could also consider asking for a deposit or partial payment up-front – perhaps when you’re dealing with a new customer, or someone who has delayed paying you in the past. Make sure the details of any staged payments are set out clearly in a written contract before you start work.

Have a clear payment process in place.

Tell your customers when you expect to be paid and remind them of the payment terms when you send their invoice. Follow up with regular reminders or statements until the bill is settled in full.

You should also encourage your customers to tell you straightaway if they’re having problems paying. You may be able to accommodate delayed or staged payments, but only if you know about them sooner rather than later! Make sure any changes to your original payment terms are agreed in writing; an exchange of emails is fine.

Tax Return For Small Businesses

Tax Return For Small Businesses

Understand the different types of taxes

There are four main types of taxes that the government requires you to pay by the end of every quarter:

Income tax: all businesses other than partnerships require you to pay this tax. Partnerships need to file informational return.

You should note that income tax is usually paid as your business earns money throughout the year, and not in a single lump sum. As a business owner you should withhold the income taxes from your employees unless they are independent contractors.

Self-employment tax: this is usually paid by the self-employed people. By paying the taxes you get a number of benefits such as: disability, survivor, and hospital insurance.

Employment taxes: these are the taxes that you pay if your business employs other people other than yourself. The taxes cover your employees’ social security among other things.

Excise taxes: these are paid if you produce and sell certain products such as tobacco and gasoline. The taxes are also known as sin taxes.

Defer the payments if your cash flow allows

Deferring tax payments reduces your overall taxable earnings for the current year. Although, it’s advisable that you defer payments, you should not defer payments for the entire year. Experts recommend that you should defer the payments of the week that you are filling the tax return forms.

While the practice aids in reducing the tax load, you should not defer the payments if you are foreseeing changes in your income tax rates. You should also not defer if you have any doubts about the solvency or the future of your clients.

Take advantage of available information

Unlike before when there was little information to help small businesses, the government and private institutions are providing a lot of resources from where small business owners can find any information that they might be interested in.

For example, there are plenty of websites that help business owners understand their tax obligations and the changes that might affect the business owners in future.

Advantages of Unsecured Business Funding

Advantages of Unsecured Business Funding

Excellent Credit isn’t needed

Because the business owner already owns a successful business, an excellent credit history isn’t necessary to obtain funding. Usually, the business has to only prove that it makes enough money to be financially responsible for repaying the loan in a timely matter. Their business stands as a testament to their successful character. Think of it as the financing company as an investor. If they see that the business is doing well, they will be happy to invest in it.

Payments based on percentages

In many cases, the borrower agrees to accept funding with the agreement that their business repays the capital with a certain amount of their gains every month. There’s usually no check writing or payment due dates. The percentage can be withdrawn directly from the sales of the business. The great thing about that is that the borrower never has to worry about missing a payment due to a lack of funds. If sales are slow during a certain month, the monthly payment is small in total. On the reverse, if the capital causes the business to be even more successful, that success will help the borrower automatically repay the loan with a rising percentage of the increasing profits it receives.

The money can be used anything

There is a multitude of reasons a business owner might need extra cash. Some may want to develop and expand their business.Technology advances every minute and keeping up to date can be important. If not the technology, it could be the locations. It’s not all the time that the perfect piece of commercial property comes available. A business would hate to miss out on their chance at taking the next step.

Others may use the money for putting their name out there with unique advertising techniques. Television commercials can be pretty expensive from creating one to paying for the TV slot. Sometimes a business might just be hiring new employees to utilize the capital for funding their payroll. No matter what the reason, an unsecured loan has much more potential than a traditional one.

Faster and Easier

A traditional loan takes time. Waiting to hear back from the bank may take weeks, especially when asking for a large sum of money. Through unsecured methods, a business can typically receive funding in as little as 3 days. If they have the need for it, they could even get approved for as much as $500,000! That much money would be hard to get approved for at a normal bank. If the business did get approved at a bank, it would most likely take a long time and come with a heavy interest rate.

Any Industry

Because no collateral is needed, an unsecured loan can be used in any industry. The business doesn’t need to sign over his/her most valuable possessions just to get funding. There are no strings attached other than the usual requirement of making a certain minimum amount each month. As long as the business is successful, it won’t matter what the industry is.

Loan With Payments

Loan With Payments

Reasonable Payments

Too often, consumers focus on just being able to get that money now. They need it and they want to put out the immediate fire. However, they can be in for ongoing financial struggles if they aren’t careful. Always look for reasonable payments when it comes to instalment loans for poor credit. As the monthly payment is too much for you to cover with your current income?

If the answer is yes, don’t take the money and say you will figure it out down the road. It can be stressful month after month if you can’t make ends meet. If you default on the loan there can be added fees added. Always make sure the amount of the payment fits well with your budget. In fact, it should be less than you could afford so you are able to have some room for new expenses without problems.

Don’t Drag it Out

Keep in mind though the longer you pay on instalment loans for poor credit, the more you pay in the end for the interest. Don’t drag it out any longer than you have to. First, don’t borrow more money than you need. Stick to the amount you need and pay it as fast as you can. If you get a payment of $100 a month strive to pay $125 when you can.

Any time you get extra money from work, a bonus, or even a gift you can use it to pay down the balance on your loan. It is going to feel great when you get it all paid off. It will also help your credit to do so. Plus, you will cut the overall interest you pay. Since instalment loans for poor credit are going to be higher interest, do all you can to slash those costs.