How Long Should it Take to Get Paid as a Business Owner?
With such extensive data available from working with thousands of customers, we’ve been able to compile some interesting statistics. Pictured in the infographic below we will teach you how long it should take to get paid as a business owner.
The data sampling included here came from 250,000 invoices sent using Due software. The data provides some interesting insights into the behaviors of clients in terms of how long they take to pay an invoice.
Understanding these patterns in behavior can help to then create the best strategy that helps to increase the likelihood of getting paid faster and even on time.
General Findings on Invoice Data
Overall, the average invoice sent from Due totals $365. Of those invoices that were sent to clients within 44 miles of the business owner’s home, 50 percent were paid within 22 days. Those invoices for clients that were up to 2,200 miles away from the business owner’s location, 18 percent were paid within 14 days of being sent.
250,000 invoices were examined, 84 percent got paid. 63 percent of invoices for one-time payments were paid within 30 days of being issued. Of those sent, 18 percent of the invoices were paid within 24 hours of receipt by the client.
One of the most critical findings from this invoice data was the fact that if a client had not paid an invoice within 90 days of receipt, there was only an 18 percent chance that the invoice would be paid at all.
Tips to Get Paid Faster as a Business Owner
In further disseminating the data from these invoices, a number of recommendations can be offered. These can help a business owner increase their chances of getting paid quickly.
By adding a company logo and using a brand image as part of your invoice template, you are three times more likely to get paid.
If you address and send the invoice to four or more people in the client’s company, you are two times more likely to get paid. By adding your terms of service related to payment expectations, you are one and a half times more likely to get paid.
However, one of the most effective things you can do to increase the likelihood of getting paid is to add the due date. This resulted in being eight times more likely of getting paid from that client.
What these tips reveal is that the actions you need to take to increase your chances of getting paid are not complicated, expensive, or time-consuming; if anything, they are very simple.
Check Out Our Infographic on Business Invoicing
For more information on our recent research about how long it takes to get paid from an invoice and what you can do to receive a faster payment, click on and review our infographic below: