Maintaining a smooth cash flow is essential to the success of any business. Late payments from customers, however, can lead to serious cash flow problems. It makes it tough for small businesses to meet payroll, pay rent or buy supplies.

We recently analyzed the 20 million invoices in the Fundbox system and found some surprising facts about who gets paid when, and just how widespread the problem really is.

Here are some key findings of our analysis:

  • 64% of small businesses are affected by late payments. {Tweet this}
  • Large corporations such as Walmart and McDonalds take the longest to pay SMBs. {Tweet this}
  • Industries most affected by late payments include Cleaning Services, Accounting & Bookkeeping, Web Design, Landscaping Services and Construction. {Tweet this}

The Waiting Game - A Fundbox Infographic

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Anna is a senior marketing manager at Fundbox where she manages Fundbox's content marketing and social strategy. Prior to Fundbox, Anna led the social media team at Salesforce. In her spare time, you can find her exploring the many restaurants of San Francisco or at a concert.

Comments

  • My Factoring Network

    Hi Anna,
    The small business funding, sometimes becomes a long procedure to be in good financial shape. It’s strange to know that small businesses relieves payment in late. It is tough for small businesses to meet business expenses.

  • Informative Info graphic. The facts about small business financing for start-ups and regular businesses are so late. It’s really a surprising fact to know tha 64% of small businesses are affected by late payments. which forms a tough part for the business expenses payment.

  • Hi Anna – How does invoice financing help small businesses manage late payments? Would’t a late payment still be damaging, even with invoice financing? For example, a small business has a net 30 invoice that they finance. It doesn’t get paid until day 45. By that point they have paid back the entire loan, but have not been paid by their customer. That is to say, regardless of whether they financed, they still aren’t “made whole” until day 45.

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