While 80% of businesses have some sort of credit management policy, only 50% of businesses actually check a buyer’s credit worthiness. Subsequently, a little less than 39% of all B2B invoices are paid on time.
This is not an uncommon issue. One third of survey respondents said that maintaining cashflow has been their greatest challenge.
For medium and large companies, an average of 4% of their invoices are written off as bad debt. That’s nearly half a million dollars for a company that does 10 million a year. For different industries, such as construction, that number can jump to 25% of billings. For smaller companies, a big client that doesn’t pay their bill can cause serious and even existential issues.
Work with an experienced lawfirm to address your account receivables. Nowland Law offers free consultations on matters such as these.