Let’s take a very specific example. One of the things many on-line entrepreneurs do is high ticket coaching, where services are upwards of $5-$10 thousand per client. So, let’s discuss a great example of how to make cash materialize for one of these coaches, even if it didn’t seem to be there before:
Let’s say that a coach has a $5,000 course offering for a 3-month course/coaching program. New clients have the option of paying the $5,000 in full or taking a 3-month payment plan paying $2,000/month for the duration of the course.
Let’s also imagine that this particular coach is having a short-term cash flow problem. Maybe she’s decided to hire a second coach, or it is time to buy a new computer, or put some money into more aggressive marketing.
At the same time, say she has 5 clients who still owe here $10,000 on their payment plans. Now, she definitely doesn’t want to alarm her clients by just saying, “Hey, I’ll give you a deal if you pay me early,” – although that IS an option not to be overlooked.
There is actually another option – and let me be clear here – this is NOT FACTORING YOUR RECIEVABLES FOR EXHORBITANT INTEREST RATES. No – for small businesses, you can actually go to a normal (not knee-crushing) bank and get a very reasonable loan based on the typical amount that your customers own you at any given point in time.