The Hidden Costs of Chasing Payments and How Invoice Factoring Solves Them

Chasing unpaid invoices: a hidden cost to your bodyshop

Chasing unpaid invoices isn’t just frustrating; it quietly drains your time, resources and energy. While you wait to get paid, your cash flow suffers, your team loses hours better spent elsewhere, and valuable opportunities slip away. What seems like a routine part of running a bodyshop can, over time, chip away at your profitability. Fortunately, invoice factoring offers a faster and more reliable way to take back control and keep your finances on track.

The real cost of chasing payments

For many bodyshops, the impact of unpaid invoices goes well beyond delayed income. The hidden costs, time, effort and missed opportunities can add up quickly. Team members are diverted from productive tasks to make phone calls, send follow-ups and manage cash flow projections. If in-house efforts fail, turning to a collection agency can bring extra costs and may even damage client relationships.

How can this affect bodyshops in the long term?

• Uncertainty around payment timings can disrupt your entire operation
• You may need to delay paying suppliers, postpone payroll or pause key investments
• Ongoing financial pressure can gradually weaken your bodyshop
• Chasing payments often costs more in the long run than it seems

What is invoice factoring and how does it work?

Invoice factoring is a smart, straightforward way to unlock cash tied up in unpaid invoices. Rather than being held back by the long payment terms often imposed by insurance companies or repair networks, you can sell your outstanding invoices to a factoring provider like ACG.

Forget waiting to get paid, ACG ensures funds are in your bank account within 24 hours of submitting your invoice, minus a small fee. After that, they handle the hassle of chasing payment from your payer. You get fast cash flow and peace of mind, so you can focus on growing your bodyshop, not following up on invoices.

Once you have received the funds, you can then use it to cover everyday costs like wages, parts or bills. The factoring company takes on the task of collecting payment from the insurance company. It’s a flexible alternative to getting capital into your bodyshop and helps maintain a more stable and predictable cash flow. To find out more, visit the ACG website.

How invoice factoring can help your bodyshop grow

Rather than spending valuable time chasing payments, you can focus on running and developing your bodyshop. With quicker access to funds, financial pressure eases and you gain the freedom to make confident decisions.

With steady working capital, you’re better positioned to take on new projects, invest in equipment and technology, and negotiate improved terms with suppliers. In short, invoice factoring gives you more time to focus on growth and less time worrying about when you’ll be paid.

Andy Watson of Silvester Crash Repair recently shared how using ACG’s services has removed the strain of chasing payments:

“While we were aware of the many benefits of utilising their funding services, the one that resonated most was the relief of not having to chase invoice payments. Running a bodyshop often feels like living hand to mouth when it comes to cash flow, and ACG’s support significantly accelerates the inflow of funds.”

Read more about Andy’s story on the ACG website.

Conclusion

The cost of late payments is more than just delayed revenue. Lost time, stretched resources and cash flow uncertainty can slowly erode your bodyshop’s stability. Invoice factoring is more than a temporary solution, it is a practical, long-term approach to strengthen your financial foundations. By unlocking funds tied up in unpaid invoices and freeing your team from the burden of collections, factoring allows you to work more efficiently and focus on what matters most: growing your bodyshop.

If late payments are holding you back, invoice factoring could be the reliable, sustainable solution you’ve been looking for. Speak to the experts at ACG today.