Let’s assume the truth lies somewhere in-between. No matter how you slice it, a significant amount of companies is forced to shut their doors because they encounter cash flow gaps they can’t figure out how to plug.
There are a number of reasons why cash flow problems materialize in the first place. Chief among them is the fact that customers generally aren’t keen on paying their invoices in a timely manner. When customers don’t pay their bills on time, businesses can’t pad their bank accounts.
In November 2015, we analyzed 20 million invoices that were in our system at the time. What we found was shocking: 64% of small businesses were affected by invoices that weren’t paid in a timely fashion.
You’ll have cash flow problems if your customers aren’t paying their bills on time. Accounts receivables may look nice on your financial statements, but you can’t actually leverage those assets until they’re converted to cash.
That’s why—and we may be a little bit biased here—using Fundbox is the easiest way to solve cash flow problems.
Using Fundbox to solve cash flow problems
Instead of sitting around and waiting for your customers’ checks to come in, you can use Fundbox to advance payments on outstanding invoices. For a small fee, Fundbox allows you to clear invoices with a click of a button.
It’s easy. Registering an account is free and simple, then you select your accounting app. Click to connect it, and Fundbox will automatically start importing your invoices. Once you’re approved, you can then choose the specific invoices you want to clear, up to your Fundbox Credit limit, and voila, the money gets deposited in your bank account in as little as a day.
You can choose a 12 or 24-week repayment schedule, repaying the advance and a flat fee. Repayments are automatically scheduled, so you don’t need to worry about missing a payment.
Don’t let your customers’ late payments derail your company. With Fundbox, you can reclaim control of your cash flow and grow your business.