Late payments plague small business…with an asterisk
USA TODAY published an interesting article on how small businesses are getting paid slower year over year, entitled “Late payments plague small business.” The article analyzes the results of a recent survey from the National Federation of Independent Business. The study finds that small businesses are:
receiving payments an average of 48 days after invoicing in 2011. That’s a six-day increase over last year, and 10 days more than in 2006.
When it comes to independent businesses, cashflow is important, and getting paid quickly is essential to running a successful business. In fact, we ran the numbers in FreshBooks to see how long it has been taking for FreshBooks users to get paid.
Not to toot our own horns but, Beep Beep. In 2010, FreshBooks users, on average, got their invoices paid in 26 days! Based on over 2.5 million users, this number was 4 days faster than in 2009 and 6 days faster than in 2008. Since we actually promise to get business owner’s paid faster, we’re all pretty jazzed to see our numbers report well above average for users.
So to quote Rapper and Poet Rakim (of Eric B and Rakim): “Stop smiling, be still, don’t nuthin move but the money,“ we ask you….Are you getting paid faster?
Do you have any great stories of moving money you can share in the comments?