The Domino Effect And Impact Of A Late Payment
The impact of a late payment can begin with your employer or even your pay schedule. If you do not receive payment as usual, or if you get paid on a bi-weekly or monthly schedule, it can result in missing a payment due date. When this happens, this can cause a chain reaction. Missing your rent payment may just be the beginning, followed by falling behind on utility or vendor payments, and so on, much like a row of collapsing dominos.
Late payments impact everyone, especially businesses and those living paycheck to paycheck. So, let’s take a few minutes to find out how to avoid the domino effect.
Impact Of A Late Payment — The Dreaded Domino Effect
The impact of a late payment can weigh heavily on small businesses and self-employed individuals. Such entities, usually operate using one supply chain. So, if any one person or vendor along the supply chain is late making or receiving a payment, the domino effect can be set into motion.
Unlike larger businesses, self-employed individuals and small businesses may not have the working capital necessary to manage a break in command.
So, when a business with no working capital is not paid, cash flow is then compromised. Thus, creating a chain reaction across the entire supply chain.
Other Ways Late Payments Impact Small Businesses And Self-Employed Individuals
We've discussed more tangible, obvious ways that late payments can affect people. But there are also less tangible impacts as well, including:
- No money for bonuses or wage increases — Ultimately, late payments reduce the amount of money you can invest in staff. Eventually, this will decrease productivity and drastically lower morale. Staff bonuses may stall too, causing retention problems and added recruitment costs to fill now-empty positions.
- Limited working capital — Without sufficient cash, plans for investment and growth are compromised. Any cash you have will now be needed to fund daily expenses and necessities. After all, you have to pay bills on time to avoid insolvency!
- Resources and time — Chasing late payments can be time-consuming and stressful. Not to mention the cost. It often takes the focus off running business operations, limiting income.
If self-employed people and small businesses are continuously experiencing late payments, it might be time to add incentives for increased punctuality.
Some businesses choose to offer a discount for on-time payments. However, we think using automated invoicing software is the best practice. It creates invoices for you, sending them to the right people at the right time. That way, you won't have the issue of human error to deal with.
How To Get A To Avoid Experiencing The Impact Of A Late Payment
If you are in danger of missing a payment, you can turn to a title loan for a quick fix.
With this type of loan, you can borrow up to $15,000 in as little as half an hour. And the best part? You don't need to visit the lender — they come to you.
The process is simple. Just complete the initial request form on our Auto Cash USA homepage, and we will connect you to one of our direct lenders who are ready and waiting to help you now.
Follow these steps to connect with a lender using Auto Cash USA:
- Start the process online by completing the secure inquiry form.
- We will then put you in touch with one of our licensed direct lenders who will take you through the next steps.
- At that time, you will receive a call to discuss the process, and the requirements, and set up a meeting location. We usually advise people to choose their home or workplace.
- Make sure you are on time for the meeting and bring your government-issued photo ID, lien-free title, and vehicle (we only accept cars, trucks, or vans).
- Wait while the representative verifies your VIN, delivers your loan packet, and requests your signature.
- Last, get the money you qualify for on the same or the following working day. You'll never need to wait more than 24 hours, ensuring you don't have to deal with the impact of a late payment.
Submit Your Title Loan Request Now!
As you now know, the impact of a late payment can affect anyone, including businesses. It is in your best interest to avoid being late at all costs.
Luckily, you can do that easily with a title loan from one of our direct and licensed lenders. Their specialists are well-versed in providing loans to those who wouldn't otherwise qualify (i.e., people with poor credit scores).
With that in mind, start the title loan process by submitting our online form right now. It should only take a few minutes to complete and can be found on our Auto Cash USA homepage. What are you waiting for?
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.