Invoice Timing is Everything to a Small Business Owner

According to our research, 63 percent of invoices are paid within 30 days. The good news is that a majority of invoices are in fact being paid. The bad news, however, is that it’s taking a month to get paid. Invoice timing matters. That may not sound like a big deal, but when you’re waiting that long to receive a payment you’re putting your business in jeopardy. And, once a bill isn’t paid in 90 days, there’s only an 18 percent chance of ever receiving that payment. That’s because it causes cash flow problems. If you’re not bringing money in, then how can you pay your expenses? And, if you’re not paying your bills, you’re getting penalized. Even worse, there’s also the hidden costs of collecting late fees. For example, let’s say you have one employee making three calls a day. They spend twenty minutes per call and make $15 per hour. You’re going to end-up paying them $3,750 a year just to chase down unpaid invoices.