Unpaid invoices cost small businesses in a major way.
It’s estimated that 1 in 10 invoices that are sent to customers go unpaid or paid so late that they are written off as bad debt. Furthermore, it’s estimated that this costs businesses $3 trillion worldwide.
What does that mean to you locally? If you are a company that does $1 million in business per year via invoice, then that could mean as much as a $100,000 write off regarding unpaid or severely late payments.
How bad is the problem? Some studies have estimated that up to 40% of small businesses in America face this issue. Depending upon your field of business, it could be higher. As a result of the bad debt, many businesses either take a loan to cover costs or cut back on staff pay to make up for the debts.
Here at Marvel Law, we strongly believe that it doesn’t have to be this way. We have a very effective solution that can work for your business in a way that you get invoices paid and preserve the customer relationship.
For more information on how we can help, please click here.