6 Ways Slow Payments Affect Small Businesses (Infographic)

Originally posted on Fundbox Blog - By Fundbox Team March 16, 2017

Originally posted on Fundbox Blog - By Fundbox Team March 16, 2017

For many small businesses, slow payments are a fact of life. We surveyed small businesses in the U.S. to understand exactly how unpaid invoices affect their growth. For example, nearly a quarter of American small businesses freeze hiring when cash flow is slow.

The opportunity cost is huge:

  • If all small businesses were paid for all of their unpaid invoices, they could hire 2.1 million incremental employees
  • 79% of small business owners choose to cut their own pay when customer payments are slow 
  • If small businesses were paid for all of their unpaid invoices, business owners could pay themselves an incremental $31k on average

Tired of paying the price for slow payments? We can help. Sign up for Fundbox.

Small Business Hiring

  • 23% of small businesses cut hiring new employees when customer payments are slow
  • If all small businesses were paid for all of their unpaid invoices, they could hire 2.1 million incremental employees

Business Owners Take a Pay Cut

  • 79% of small business owners choose to cut their own pay when customer payments are slow
  • If small businesses were paid for all of their unpaid invoices, business owners could pay themselves an incremental $31k on average

No New Equipment

  • 23% of small businesses would hold off on buying new equipment if customer payments were slow
  • If small businesses were paid for all of their unpaid invoices, they could purchase an average of $9.2k in new equipment

Reduced Marketing Budget

  • 20% of small businesses cut marketing and growth efforts when customer payments are slow
  • If small businesses were paid for all of their unpaid invoices, they could invest $8.3k more in marketing and growth

Payroll Takes a Hit

  • 18% of small businesses hold back on pay increases when customer payments are slow
  • If small businesses were paid for all of their unpaid invoices, they could spend $7.4k more on employee salaries

Decreased Inventory

  • 17% of small businesses cut spending on inventory when customer payments are slow
  • If small businesses were paid for all of their unpaid invoices, they could invest an incremental $6.7k in inventory

How does your business compare?

Say goodbye to Net-30/60/90 payments. LVRG offers business owners a simple way to fix their cash flow by advancing payments for their outstanding invoices. We’re helping thousands of business owners and freelancers overcome cash flow gaps by advancing payments for their outstanding invoices. We can deliver the funds as early as the next business day by purchasing your outstanding invoices without interfering in your relationship with your customers. Here’s how it works:

CREATE A FREE ACCOUNT IN UNDER A MINUTE

It’s entirely free and takes about twenty seconds to complete. Enter your email, choose a password, select your bookkeeping app and you’re done. Continue using your bookkeeping app just as before and your outstanding invoices are automatically available for you to clear in your secured account.

CLEAR YOUR OUTSTANDING INVOICES

Instead of waiting 30, 60 or 90 days to get paid, click any of your outstanding invoices to get the amount transferred to your bank account instantly and securely.

You no longer need to wait for your customers to pay you to get the funds you need. We will purchase your outstanding invoices and will immediately transfer the full amount of each invoice to your bank account. Payments are made automatically on a weekly basis. Choose 12 or 24 week payment periods. Simple and secure.

YOUR MONEY WHEN YOU NEED IT

We manage the associated credit risks and make sure you don't have to wait for your customers to pay to run your business like you want to. Pay salaries, buy equipment, travel for business, and more. You're free to focus your time and energy on maintaining and growing your business, not your invoices. Peace of mind guaranteed.