Unpaid invoices are a huge challenge for businesses of all sizes and types. The past two years have resulted in a massive increase in the number of unpaid invoices, leading many companies to wonder if they can sell their unpaid invoices. Today we’re going to look at this topic in more depth to help you review your options if you have an unpaid invoice to contend with in the future. Our team will be here at any time to support you with this issue, so don’t hesitate to reach out to us with any questions.
How Can You Sell an Unpaid Invoice?
Selling an unpaid invoice might sound like it’s too good to be true, but there are some cases in which it’s a possibility. If you have an invoice that is under dispute or has a bank guarantee attached, you’ll need to understand that you don’t have the legal right to sell this invoice. However, selling unpaid invoices has become something that’s received more focus in the past two years, which is why you’ll want to find out if it’s an option for your business.
Selling an unpaid invoice could offer you many benefits, such as allowing you to pay your staff on time and fulfil future orders for your clients that you may be struggling with otherwise. These invoices can often be sold for cash, but you could also consider selling them to a third party if you don’t need the money in a rush. It’s often cheaper and quicker to do this than hiring a lawyer to help you with the process, but you still need to think carefully about whether it’s the right solution to your current problems. You may be able to just wait out the unpaid invoice, which will stop you from having to deal with the legal side of this process.
Is It Legal to Sell an Unpaid Invoice?
If you aren’t familiar with the practice of selling unpaid invoices, naturally you might be wondering if this is a legal solution to your issues. Selling an invoice requires you to take your debts and sell them directly to an agency that deals with debt collection on a daily basis. They are equipped with the right tools and experience to try and claim back this debt, which means that they are more likely than you are to recoup the money in the long run. However, you need to decide if this is the right course of action for your business. If you are looking to retain a customer or think this is a one-off issue, then you may likely just want to try and hold on to the invoice until they can pay it.
You need to focus on protecting your rights as a business if you do opt to sell an unpaid invoice. While non-payment of an invoice is a huge issue for companies today, remember your invoice is a legal document. It needs to be written in a manner that protects you in the first place, which may be where you have gone wrong initially. When an invoice becomes legally overdue, you need to do all you can at this point to both protect yourself and work to get the money back. Selling invoices is certainly one option you have, but our team will be happy to discuss the other solutions that are commonly used to receive payment on time.
Ways to Avoid Unpaid Invoices
If you have got to the stage where you are thinking about how to sell an unpaid invoice, then likely you have been trying for a while to receive your payment. Businesses need to do all that they can to avoid these issues in the first place, so you don’t sell invoices too regularly. Take the time to craft the perfect invoice and ensure all the terms and conditions of payment are clearly written. You’ll then want to have a process in place where you check up on your invoices to avoid having to sell the unpaid invoice. Make sure all of your customer service and finance teams are on board with this process so that you can collect your payments in a timely manner in the future.
Are you having issues with unpaid invoices? If so, selling your unpaid invoice is one solution to this issue. We recommend working with our team to discuss the various options on offer to you and to find the best answer to the problems you are facing. Get in touch with our team today to learn more about how we can help you to avoid unpaid invoices in the future. We know the struggles you are facing currently might feel like too much to handle, but we’ll be here to support you every step of the way.