Many things could pose significant roadblocks for a business when it comes to its plans for the future. Among these is a business not getting promptly paid for the goods or services it provides by the parties it contracts with. Not getting payments on invoices is a problem all different kinds of companies here in Louisiana can encounter. A recent survey underscores how wide-ranging the impacts of this type of contract-related problem can be.
In the survey, which was done by the company Fundbox, various small businesses were asked about the effects of invoices they put out going unpaid. Among the things the survey results suggest businesses have trouble with when they don’t get prompt payment on invoices are:
- Hiring new workers.
- Building up inventory.
- Getting new equipment.
- Keeping pay levels up (both for owners and employees).
Given how unpaid invoices can leave a business with fewer resources than it was expecting, one can understand how they could cut into business spending on the areas mentioned above. These different areas can have major implications on a company’s future growth and well-being.
So, how a company responds to unpaid invoices and similar contract problems can be a matter of considerable importance. Skilled Louisiana business law attorneys understand how serious of a situation it can be for a business when the parties it contracts with don’t live up to their end of the agreement and can help businesses in the state with understanding what legal options they can pursue when faced with this situation.
Source: Small Business Trends, “Unpaid Invoices Prevent Small Businesses from Creating 2.1 Million New Jobs (Infographic),” Joshua Sophy, March 19, 2017