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How Do Slow Payments Affect Businesses?

Slow payments can have a significant impact on a business's operations:
Cash Flow Problems: Delayed payments can lead to a shortage of working capital, affecting daily operations.
Increased Borrowing: Businesses may need to take out loans to cover shortfalls, leading to increased interest expenses.
Strained Supplier Relationships: Delays in receiving payments can hinder a company's ability to pay its own suppliers on time.
Opportunity Cost: Funds tied up in unpaid invoices could have been used for other investment opportunities.

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