Past Due IOU: Small Business Owners Have Billions in Unpaid Invoices

adminBusiness & Finance, Entrepreneurship / Small Business

invoice factoring

If you’re a business owner, chances are you have been at the wrong end of a delinquent payment. In fact, according to a recent study, your business has more than a few debtors that are past due. Currently, late paying clients are piling up an average of $84,000 in unpaid invoices for every small business owner in the nation. With the U.S. playing host to 2.96 million small businesses, there could be as much as $825 billion in unpaid invoices!

Think of all the businesses that close on a yearly basis. What’s the number one reason why they close shop? Cash flow issues. In most instances, these businesses only have enough in savings to survive a few weeks. Unless they can collect from their debtors before the well runs dry, owners are forced to find creative methods to keep operating. However, even the most creative of methods can only keep a business afloat for so long.

Now imagine those same failed businesses, but with that extra $84,000 to be used toward development and growth. Better yet, picture the economy with an additional $825 billion being in circulation. Small businesses already provided 55% of all jobs across America. How many more jobs would be created with close to a trillion dollars fueling growth? The economical impact small business has on the U.S. cannot be overstated, so please pay your invoices.

If you’re a business owner, chances are you have been at the wrong end of a delinquent payment. In fact, according to a recent study, your business has more than a few debtors that are past due. Currently, late paying clients are piling up an average of $84,000 in unpaid invoices for every small business owner in the nation. With the U.S. playing host to 2.96 million small businesses, there could be as much as $825 billion in unpaid invoices!

Think of all the businesses that close on a yearly basis. What’s the number one reason why they close shop? Cash flow issues. In most instances, these businesses only have enough in savings to survive a few weeks. Unless they can collect from their debtors before the well runs dry, owners are forced to find creative methods to keep operating. However, even the most creative of methods can only keep a business afloat for so long.

Now imagine those same failed businesses, but with that extra $84,000 to be used toward development and growth. Better yet, picture the economy with an additional $825 billion being in circulation. Small businesses already provided 55% of all jobs across America. How many more jobs would be created with close to a trillion dollars fueling growth? The economical impact small business has on the U.S. cannot be overstated, so please pay your invoices.

small business financing
 
small business financing

Fortunately for business owners, waiting to collect from debtors isn’t their only option. Instead of sitting on $84,000 in unpaid invoices, it is possible to quickly turn them into working capital with invoice factoring. Invoice factoring is the process of selling accounts receivable to a third-party in exchange for immediate cash. Not only is factoring one of the oldest forms of small business financing, it is also one of the fastest and most affordable. Since 1942, Transfac Capital has been providing small business financing to our nation’s entrepreneurs. To find out how our 75 years of experience can help your business, contact us today!

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Fortunately for business owners, waiting to collect from debtors isn’t their only option. Instead of sitting on $84,000 in unpaid invoices, it is possible to quickly turn them into working capital with invoice factoring. Invoice factoring is the process of selling accounts receivable to a third-party in exchange for immediate cash. Not only is factoring one of the oldest forms of small business financing, it is also one of the fastest and most affordable. Since 1942, Transfac Capital has been providing small business financing to our nation’s entrepreneurs. To find out how our 75 years of experience can help your business, contact us today!