All small business owners know that running your own company brings its own stresses and strains. While being the boss is great, everything that comes with it is not always as good. One common source of frustration is unpaid invoices. If you find yourself staring at a pile of invoices which clients have not settled yet, you need to get on top of it fast. But just how can they impact negatively on your whole company?
Time and money to sort out
One of the ways that unpaid invoices drag your whole business down is the time it takes to sort them out. Many businesses have to employ credit control staff to get the money they are due. This creates extra financial pressure though as you have to bear the cost of taking on staff to do this. This is money that could be saved for leaner periods or help you to grow in the future. Even if you or existing staff take on the onerous job of chasing up unpaid bills, it is valuable working time that you could be spending on other key areas.
Of course, perhaps the major way all small business owners feel the effect of unpaid invoices is in their cash flow. Put simply, not being paid for work completed on-time can mean the flow of money into your company is severely reduced. This then has a major impact on the flow of money through and out of the business. Whether it is not being able to pay staff wages, not being able to buy new stock or not having the cash to pay corporate energy bills, unpaid invoices can wreak havoc.
Hits morale and overall atmosphere
If the company is starting to experience money worries due to unpaid invoices, this can really affect staff morale. If they know that the business is low on funds and struggling to stay afloat, they will naturally become anxious about their own jobs. This will leave them unlikely to enjoy their work or perform to their best. It will also have a personal impact on you as the business owner too. You will end up feeling very stressed over your unpaid invoices and may even start to show these feelings to employees or become grumpy to deal with.
Let Penny Freedom make it all better
As the above shows, unpaid invoices are not to be taken lightly. But how can you make them disappear? The best solution is to start using Penny to raise and finance your invoices.
Our simple platform lets you create and send invoices with the option to get paid instantly. Your customer then pays us when they normally would. No hassle, no fuss and no worries.
Find out how simple it is by booking a demo with a member of our friendly team.