When trying to gain traction in your business or personal financing, there is something that can come your way. Sometimes income is slow. Other times it’s an urgent or unexpected expense that slows things down. Whatever it is, one of the things you want to avoid as much as possible is to pay late.
Delayed payments can be devastating and can ruin your financial confidence. It may cost you more. Many companies issue Late payment fee Or bills and payments that are late. These payments are set by the company and can compound monthly or even daily.
Late credit scores can be another costly result of late payments. If you or your business has debts that need to be repaid, missed payments or late payments can lower your credit score with credit bureaus TranUnion, Equifax and Experian. With your business credit score Right and Bradstreet May also be affected.
A low score with any one of these agencies can make it difficult for you to get a mortgage or a car loan. And, it can make it harder for your business to get funding in the future.
How late payments affect our entire economy
When people think about late payments to banks, it’s easy to imagine that it doesn’t make much difference to an institution that generates billions of dollars. But what are the effects of late payments on small companies?
Overall, when customers pay late, it hurts the overall ecosystem of small and medium-sized enterprises. Quickbooks Survey 2,000 SMEs and they found that 65% of businesses said they spend an average of 14 hours per week completing administrative tasks related to payment collection.
Another detrimental consequence of late payments to small business customers is the reduction in cash flow. In the same Quickbooks study, 72% of business Said that processing payments has also affected their ability to grow their business. Late shipments limit the money available for a business.
When there is no cash flow available for these businesses, there is a need to spend more time to pay off outstanding invoices which means less time to work on growth-related activities. The stagnation of this business growth usually means a slowdown in recruitment or even layoffs of existing employees.
Here are some things you can do to prevent late payments from crippling your financial future and overall economy.
1. Automate everything you can
One of the easiest ways to prevent your payments from being delayed is to set them up for automatic payments. You can repay your loan by direct debit on the same date every month without doing anything. That way you don’t forget to send the payment and stop charging you any delay fees.
If you do not want to set up direct debit, there are third-party tools you can use that will help you automate your payments. These are common among digital-only banks that operate through smartphone apps. These can be especially helpful if you want to keep all your payments in one place
2. Know your account
Set aside one day each month or even week to view your accounts. Make sure you know exactly how much money is coming in and how much is going to go out. This will prevent you from having enough money in your bank to pay your bills and you know which bills you have paid.
If you have accounts with different financial institutions, you may want to have an app that lets you view all your accounts in one place. This will give you a quick look at what’s happening with your accounts and help you see if funds have been debited to your account.
Here are a few apps that let you monitor your finances in one place:
Mint-It is one of the most popular financial applications available. Mint is a free budgeting app that syncs users’ bank accounts, credit cards, PayPal.com and other accounts. Mint is great because it helps track incoming and outgoing money.
Checkbook-This app is similar to Mint because it tracks unlimited amount of accounts and helps to track expenses for tax purposes. The checkbook works like a handwritten checkbook laser and contains beautiful, easy-to-understand reports.
Good budget-This is an app that helps you keep a budget by monitoring your expenses, savings and debt.
Pocketguard-This app categorizes and organizes your costs, monthly bills and subscriptions into neat, beautiful tabs and graphs,
If you do not want your payments to be set automatically, it may be helpful for you to have monthly reminders. You can set them up on your phone, write them on your calendar, just make sure they’re in a place where you can easily see them, so you don’t forget to pay.
Try to set your reminder for a period of time when you can stop what you are doing and pay for it there and then. Otherwise, you will swipe it and assume that you will reach it later and eventually miss the payment again. Some companies, especially banks, will send you reminders when a payment is due.
4. Change the date of payment
If you constantly miss payments because they are at the end of the month and this is when you work the most and do the most overtime, it may be best to change the payment date.
Try to publish your payments fairly on the same day each month and when you’re able to spend time paying them. Spreading these out over a month can make it impossible to remember, so contact the companies and try to remove them on the same date.
5. Follow all payments
Missing a payment can be scary when you first do it by mistake but try not to get upset. Make sure you contact the company a second time you realize and pay. It’s also a good idea to ask if any fees have been added to your account. If you find it difficult to stay on top of your payment, try applying some useful tips above and you will soon see that you will never miss out!
We’ve all been in a financial crisis at one time or another, and you may have focused on borrowing money directly from lenders to help you get through it. Even if you don’t have a great credit score, lenders out there pay No credit check loanSo no matter what your situation, you can still qualify.
However, you may encounter some problems while paying. Not only can this cause problems for the lender, but it can also potentially damage your credit score. To help, here are some top solutions to fix any problems you may have with late payments.
Finance খুঁজুন Find Your Way · Mindset
Entrepreneurial Lifestyle · Money খুঁজুন Find Your Way · Your Mindset