The shocking truth reveals that the average small business waits 27 days to get paid, with 1 in 4 invoices being paid late (over 30 days), costing small businesses $3 trillion annually.
Accounts receivable delays can severely impact a business's cash flow, causing a detrimental domino effect.
Illustrative scenario: A business delivers $5,000 worth of work, waits 30 days for payment, struggles with late payments, falls behind on bills, and perpetuates a cycle of financial strain.
The financial implications are significant, requiring businesses to have substantial funds saved up to bridge the gap between service delivery and receipt of payment, as exemplified by Tom's landscaping company's real-life cash flow struggle.