90% of businesses that fail do so because they run out of cash. Of the 90%, 60% of them are profitable businesses, meaning they didn’t get paid for their work. 

We see many businesses that are profitable on paper but have no money in the bank, the sad part is they come to us for debt collection as a last resort.

There is no money in the bank

90% of businesses that fail do so because they run out of cash. Of the 90%, 60% of them are profitable businesses, meaning they didn’t get paid for their work.

We see many businesses that are profitable on paper but have no money in the bank, the sad part is they come to us for debt collection as a last resort. By this time the owners are so stressed out, and emotional and don’t know what to do.

In all honestly, the problem was their way before they came to us. I urge you to figure this out before it gets to this.

Generally, most business owners will try to outsell their problem instead of facing the fact that people are not paying them for work they have already done. It is almost impossible to fix this problem by trying to outsell it.

Don't ignore your debtor's ledger

When businesses ignore their debtor's ledger and hope their customers will pay it becomes a vicious circle. Especially if they are working hard to bring on new customers who also don’t pay.

Did you know that up to $19 Billion is owed to small businesses on any given day?

According to a study done by Illion formally Dun and Bradstreet, late payments to small business adds up to $19 Billion per year. Their analysis shows that only 38% of invoices are paid on time. This is an appalling statistic because it means a substantial number of businesses are working for free.

Every day an invoice is left unpaid the chances of it being collected get substantially less. We know this because we deal with the fallout from late payers every day.

Late payers eat up your profits

Late payers eat up your profits, but worse, they eat up costs that you are most likely unaware of. Many businesses use overdrafts or bank loans to manage their day-to-day business activities if they were to look at their cash flow statement they would see that their business has no cash and this is a critical situation.

Most businesses just look at the money in their bank account and not at the real numbers. By analysing the real numbers you can see where the business is at and determine the best path forward.

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