The primary reason that businesses are opened is to make money. Whether it’s to sustain a lifestyle, provide funds for a cause, or some other goal, a business needs an incoming cash flow in order to stay open. However, this is a fairly large problem for many small businesses, as their invoices often don’t return in a timely manner.
As a small-to-medium-sized business owner, operator, or even employee, you depend on the business to make money so that you can meet the financial obligations that life presents you. However, most industries have taken to offering payment terms that stretch the time that an invoice must be paid by to 30, 60, or as many as 90 days.
As a result, many businesses--most likely including yours--have encountered difficulties in their operations as they wait for the payments from their clientele to come in.
These difficulties are far more prevalent than one may initially think. It is estimated that a full 5 percent of the national gross domestic product is made up of unpaid invoices, the average small business waiting for about $84 thousand in unpaid invoices, 81 percent of which are past due by 30 days. Comparatively, the average small businesses has about 27 days worth of capital available to them in reserve.
In 2016 alone, there was an estimated $825 billion in unpaid invoices owed to small businesses.
Clearly, this causes a problem for many small and even medium-sized businesses. With their money tied up in sustaining themselves until their cash flows continue, these businesses aren’t able to improve their operations. What was the last project you started that had to be put on hold because there simply weren’t the available funds to cover it?
As much as we hate to ask you to make an investment when we just said that small businesses aren’t able to access the funds they need to function, Ferrum Technology Services can help you reduce your capital spend by transferring a lot of your financial obligations into predictable, budgeted amounts where your IT is concerned. We’re here to help you utilize software to enable your business to run smoothly with solutions that will help you manage and track where your money is, and isn’t, coming from.
Call us at 847-697-3282 for more information about line of business applications and programs that can help you keep track of your invoices.