Unpaid Invoices leaving SMEs in a Cash Crunch

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Unpaid Invoices leaving SMEs in a Cash Crunch

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.

 


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