Late payment (not getting paid at the right time) is one of the biggest challenges of running a small business in Nigeria. On average, small businesses spend 1.3 days per month chasing invoices, and the average invoice is paid 10 days late.
“With most businesses spending more time than required chasing overdue payments and ensuring they get paid at the right time, late payments causes a great threat to the survival of small businesses.”
Supporting small businesses is key to achieving a sustainable economic turnaround for Nigeria as a country. With a specter of unpaid invoices and cash flow difficulties hanging over the country’s entrepreneurs, it will be difficult for small business to freely play the role they should in ensuring a stable economic situation in the country.
“The issue of late payments should be given more prominence, with more education needed on how business owners can turn invoices to cash faster and improve cash flow.”
In a conducted research, considering the main factors causing late payments, 24% of respondents said they believed customers were waiting for payments themselves; 23% believed customers are disorganised and can’t track their payables; and a further 23% said customers set their own internal payment terms for paying invoices, regardless of supplier terms.
In response to these challenges combating majority of small businesses in Nigeria, we’ve launched an online invoicing solution that helps small businesses bill clients easily, track payment progress and get paid faster for all business transactions. With our solution, we aim to greatly minimise the time and effort wasted by most business owners and entrepreneurs in chasing up clients for late funds and ensuring they get paid on-time for provided services.
To learn more about how we are solving this problem of late payments for most small business owners and entrepreneurs in Nigeria, visit https://invoice.ng to learn more.