Very few things, if anything, are more stressful as a business owner than not having the money in the bank to cover payroll, pay bills, etc. More than 60% of small business owners say they’ve experienced cash flow challenges, according to recent research by QuickBooks. Today’s episode is all about the habits and procedures you can put in place to help alleviate some of those cash flow challenges. At the top we talk about the importance of submitting deposit and progress invoices, and then discuss a new feature that QuickBooks has announced to help small businesses feeling the cash flow crunch.
In a perfect world, you would get paid upfront for every invoice and avoid stressful cash flow shortages. In the real world, you can request Get Paid Upfront—a new invoice financing tool available through QuickBooks®. Get Paid Upfront is an invoice financing tool that allows you to request earlier access to invoiced funds by receiving an advance on your unpaid invoices. Eligible QuickBooks Payments customers can request Get Paid Upfront for qualifying invoices. If approved, Get Paid Upfront provides you with early access to invoiced funds.
When your client pays their invoice with QuickBooks Payments, the money is applied to the outstanding balance of the financed invoice—no forms, no extra work, and no hassle. The invoice advance is interest-free for the first 30 days. If the invoice is paid within 30 days through QuickBooks Payments using ACH or credit card payment, you won’t be charged any payment processing fees. If the invoice advance isn’t repaid within 30 days, the outstanding balance will begin to accrue interest on day 31. You can repay the total financed invoice in 12 monthly installments at a fixed interest rate as outlined in your borrower agreement. You can prepay your loan in full or in part without being charged any prepayment penalties. No late fees are charged for Get Paid Upfront.
Once you’ve accepted an approved Get Paid Upfront offer, you’ll receive a deposit of 97% of the invoice amount into the business bank account provided in your application. The money should appear in your account within a few business days. You can access a total credit limit up to $30k in funds on one or more qualifying invoices. The maximum invoice amount for each qualifying invoice is $10k.
Get Paid Upfront is a fast solution for your immediate cash flow problems. Just pay a 3% loan fee per invoice financed, plus any interest that accrues after the first 30 days. As always, Get Paid Upfront is completely confidential to your customers, so you can keep running your business knowing QuickBooks is helping behind the scenes.
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