For one week a month, jobs reports dominate the headlines.
Political sides argue the implications of the numbers. And everyone wants to know — who’s responsible?
You may never hear slow job growth numbers being blamed on unpaid invoices to small businesses, though.
The Biggest Impact of Unpaid Invoices
But according to new data from Fundbox, small businesses not getting paid for their products or services has a direct impact on their ability to hire.
Of the six ways that unpaid invoices adversely impact small businesses, hiring is No. 1.
Twenty-three percent of the small businesses surveyed by Fundbox say they can’t hire a new employee if they have outstanding invoices.
One small business owner told Fundbox that an unpaid invoice results in a dilemma: “I choose between hiring freezes and not paying myself while I work on getting the payment.”
So, if small businesses got paid for all unpaid invoices at once, Fundbox estimates, they could add 2.1 million new jobs to the U.S. economy.
Something’s Got to Give
It’s obvious small businesses are operating on a shoestring budget. No bill can go unpaid without having a negative impact.
And while hiring is most likely to take the hit initially, other areas of a small business will suffer, too.
“Being paid late is an unfortunate reality faced by most small businesses. This has a massive trickle down effect on the owner, the company, and the
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