6 Ways Slow Payments Affect Small Businesses
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 SMBs 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.