What makes this especially alarming is another statistic that shows, on average, small businesses usually have about $84 thousand of unpaid invoices on their books.
“29% (of small businesses) failed because they ran out of cash,” said Fundera in a report on small business challenges. “14% failed because they ignored their customers.”
Many business owners allow unpaid invoices to pile up in order to preserve positive customer relations. Instead, data shows owners should be concerned about losing money from delinquent customers.
Fundbox, a financing company who focuses on small business, estimates that the total amount of unpaid invoices in the US is almost equal to about 5% of the US Gross Domestic Product. That's hundreds of billions of dollars that businesses are missing out on.
Keep in mind Warren Buffett's advice for business. “Rule one, don’t lose money. Rule two, don’t forget rule one.”
If you are dealing with overdue and unpaid invoices and need help recovering your funds swiftly and professionally, call Morgan, Cohen & Bach at (520) 442-1303