dummyUnpaid invoices can have serious consequences for your company. They can strongly affect the financial health of your company and even lead your business to bankruptcy. Did you know that unpaid invoices are responsible for more than 25% of bankruptcies?
→ Unpaid invoices generate direct costs: phone calls, reminder letters, and eventual legal proceedings. However, those consequences go far beyond.
→ Unpaid invoices jeopardize your company’s dummycash flow. In order to pay your own invoices, you must draw on your cash and perhaps make short-term credits that generate additional costs.
→ Unpaid invoices also prevent the development of your business. Due to lack of cash, you have to postpone your development projects. You may even need to reduce your costs in order to maintain the viability of your company.
To compensate that financial loss, you must generate a turnover significant higher than the default. In the case of an unpaid invoice of €10,000, when your profit margin is 10%, you must generate €100,000 of additional turnover to compensate the loss.