A recent study conducted buy PayPal and Intuit shows that on an average small businesses are owed $13,000 and one forth of these businesses resort to credit from banks for their operating cash.
On an average a small business spends 12 days in a year chasing unpaid invoices.
Other prominent findings;
- only 12% of small businesses request upfront payment, with two thirds (67%) taking up to a week to issue an invoice and one in 10 invoicing more than a week
- 27% of small businesses have been forced to take on loans or credit to pay suppliers and wages
- 24% of small businesses that don’t insist on upfront payments wait more than a month to be paid
- 29% that don’t insist on upfront payments say reducing the time taken to get paid will enable them to run the business more effectively.