16 May So why do people NOT pay their bills? The list is endless. And it’s not that funny.
On average, each Australian business is owed more than $38,000, with corporate customer excuses ranging from ‘lost in the system’, ‘in dispute’ to ‘being reviewed internally’ or ‘being processed offshore’.
While we are not making light of these excuses, sometimes they are so maddening, they border on comical.
However, it’s not funny when you’re cash strapped and things are looking grim in your cash flow department, and you’re seriously having to consider closing shop.
When you consider that, collectively, the each Australian business owed more than $38,000 figure equals $76 billion in frozen liquidity that is stalling the economy at any one time, it suddenly becomes no laughing matter. And as any business will attest, it does not matter what the stats are, any deterrent to a business flourishing can spell the death knell for a business’s morale, productivity if there is a hint of a business they’re just an employee of closing, and all the associated negativities: fire sales on stock, and even worse, having to lay people off because there is simply not enough money in the coffers to pay staff.
Says Nick Holmes from billzy®:
“billzy® allows you to unlock the equity in your unpaid invoices simply and quickly. An invoice sent via billzy® is also easier for your client to pay”.
From this report’s findings, here are the reasons invoices are not paid:
Not processed: 23%
Insufficient funds: 21%
Lost in the system / stuck in a bottleneck: 17%
Being reviewed internally: 12%
Not approved: 7%
No purchase order: 5%
In dispute: 5%
Being processed offshore: 4%
So, what have you experienced by way of outlandish excuses to not pay?
Share your stories! We will report back on them in the upcoming billzy® newsletter.
*Findings from ‘The Invoice Market’, SME cash flow crisis report, January 2017