The invoice aging table
Start by sorting what you are owed by how late it is. This tells you where the real problem sits.
| Age | What it usually means | What to do |
|---|---|---|
| Not yet due | Normal terms | Nothing, but plan your cash around it |
| 1 to 30 days late | Often an oversight or an approval delay | Friendly reminder with the invoice attached |
| 31 to 60 days late | A process problem or cash tightness at the customer | Call the person who approves payment and ask for a date |
| 60+ days late | Dispute or serious risk | Written demand, stop new work, consider next steps |
Fix the front end of the process
- Send invoices the day work is complete, not at month end.
- Put the due date, the payment methods and a contact name on every invoice.
- Ask for deposits on large jobs.
- Agree in writing on what triggers payment, such as delivery, acceptance or inspection.
- Offer easy electronic payment.
Many late payments are really friction: a missing purchase-order number, a form the customer's accounts team wanted, an invoice sent to the wrong person.
When the customer is one big account
If a single customer makes up much of your revenue, their payment habits set your cash flow. You may feel unable to push back. Even so, you can document the terms, escalate politely and start diversifying so one slow payer cannot freeze the business.
What working capital does in this situation
Working capital lets you pay payroll, suppliers and rent while the invoice is outstanding, so the customer's timing stops setting yours. It is a bridge, not a cure: if the invoices are never going to be paid, funding adds to the loss instead of covering it. Assess whether the receivables are real before you rely on them.
Funding runs from $25,000 to $5,000,000. The review reads about three months of your business bank statements and does not require tax returns, with a soft pull and FICO 500 and above considered.
A payment-terms conversation worth having
When you take on a new customer, set the payment terms before the work starts, not after. Shorter terms, partial deposits and late-payment language in the contract all help. For existing customers, a short note explaining that you are tightening terms for everyone tends to land better than singling anyone out. Customers who value your work usually adjust, and those who do not tell you something useful about how much risk that account carries.
Apply
Funding can arrive in as little as 24 hours. Sole proprietors can apply. Start the application when you know how much of the gap you need to cover.