Advance on Issue or Draft???

[cb85]

Which do you prefer?

Is it important to you to know that the first payment actually cleared the bank before you get advanced?

I've always been paid on draft clearance but getting paid on issue sounds attractive midmonth when I begin to get a lot of post dated checks for the beginning of the following month.

Has anyone noticed an increase in charge backs/nto's from getting paid on issue?

Yes, you will see an increase of charge backs. Every company pays differently. Some companies pay out 7 days after the draft day to make sure it clears and some pay within two days of the draft day not knowing if it will clear or not. Personally, I get paid upon issue and I have seen an increase of charge backs. As long as I am writing consistent business with the carrier that I am paid on issue with, I don't really notice. This increases my cash flow to help grow my business, but I'd also be careful. One bad week can really put you in the hole.

Good Luck and Merry Christmas.