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Late Payments Are Costing Small Businesses Thousands: 12 Practical Ways to Get Paid Faster and Protect Your Cash Flow
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Why Profitable American Businesses Still Run Out of Money
A small business can have loyal customers, a full schedule, signed contracts, and thousands of dollars in completed work—and still struggle to pay rent, employees, suppliers, insurance premiums, and taxes.
The reason is often a dangerous gap between earning money and actually receiving it.
For a contractor, it may mean waiting for a general contractor to release payment. For a marketing agency, it may mean chasing a client who approved the work but ignored the invoice. For a freelancer, it may mean putting groceries or a utility bill on a personal credit card because a business customer has not paid.
This is not simply an accounting inconvenience. It is a cash-flow problem that can spread from one unpaid invoice to every part of a business.
The 2026 QuickBooks Small Business Late Payments Report found that 59% of surveyed businesses had invoices overdue by at least 30 days, up from 47% in the previous year. Businesses with unpaid invoices were owed an average of $17,700. The report also found that 39% of owners said a late payment had made it harder to cover payroll or bills during the previous year.
These findings highlight a critical distinction: sales are not the same as available cash.
The solution is not necessarily to borrow more money, work longer hours, or accept every customer who promises future business. It is to build a reliable system that makes payment easier, identifies problems earlier, and protects the business when customers pay late.
1. Calculate the Real Cost of Every Late Invoice
Many owners focus on the amount owed without calculating what the delay is costing their business.
Imagine a small American commercial cleaning company that completes $8,000 in monthly work for a property management client. The client pays 30 days late, forcing the cleaning company to cover wages, supplies, transportation, and insurance before receiving its money.
If the company has $5,000 in monthly operating expenses, the delayed payment can create a serious short-term cash shortage even if the contract remains profitable.
Consider this illustrative example:
| Monthly business figures | Amount |
|---|---|
| Completed work awaiting payment | $8,000 |
| Operating expenses due before collection | $5,000 |
| Cash available at the start of the period | $2,000 |
| Potential cash shortfall | $3,000 |
The company may have earned $8,000, but it does not necessarily have the cash to pay its bills.
The figures above are an example, not a reported company's financial results.
Use a simple cash-flow calculation
Calculate:
Cash-flow gap = Payments due before customer money arrives − Cash available for those payments
If $6,500 in bills will fall due before expected collections and the business has $4,000 available, the immediate gap is $2,500.
This calculation helps owners identify the amount and timing of the problem instead of reacting only when a bank balance becomes dangerously low.
Create a weekly cash-flow forecast covering the next 13 weeks. List the expected date and amount of each customer payment, payroll, rent, supplier bill, tax payment, loan installment, and other major expense.
Use three collection estimates:
Expected: The customer usually pays within the agreed terms.
Delayed: The customer may pay one or two weeks late.
Stress case: A major payment does not arrive during the forecast period.
The purpose is not to predict the future perfectly. It is to see a shortage early enough to respond without expensive emergency borrowing.
2. Stop Giving Customers Unnecessary Credit
One of the most effective ways to reduce payment delays is to reconsider when customers are expected to pay.
Some businesses automatically issue invoices with Net 30 terms, meaning payment is due within 30 days. That arrangement may be necessary when working with established companies, large contractors, or organizations with formal purchasing procedures. However, it is not always appropriate for every customer or project.
The QuickBooks 2026 findings show a meaningful relationship between payment terms and overdue invoices. Among businesses reporting overdue invoices, 55% used Net 30 terms, compared with 26% of businesses requiring immediate payment who reported overdue invoices. These survey comparisons do not prove that payment terms alone cause late payments, but they demonstrate why owners should examine their collection policies.
Match payment terms to the work
For small projects, consider requiring payment when the service is completed.
For larger assignments, use a milestone-based arrangement where commercially appropriate.
An illustrative $10,000 project might use the following schedule:
| Milestone | Payment |
|---|---|
| Contract signing | $3,000 |
| Completion of agreed first stage | $3,000 |
| Delivery of final approved work | $4,000 |
This structure reduces the amount of money the business must finance while waiting for the customer.
For ongoing services, consider monthly billing at the beginning of the service period, automatic recurring payments, or deposits where permitted and commercially reasonable.
For construction, regulated industries, and consumer contracts, check applicable state laws, licensing requirements, contract rules, and any restrictions on deposits or advance payments.
Make the terms impossible to misunderstand
Every quote or contract should specify:
The total price and what is included.
The invoice date and payment deadline.
Accepted payment methods.
The process for approving completed work.
How disputed charges will be handled.
Any lawful late fees and how they are calculated.
The process for additional work outside the original agreement.
Avoid relying on a verbal promise that the customer will pay “soon.” Written terms give both parties a clear reference point and make misunderstandings easier to resolve.
3. Send Invoices Immediately After Completing Work
An avoidable mistake is waiting until the end of the month to prepare invoices for services already delivered.
If work is completed on October 2 but the invoice is not sent until October 31, the business has lost nearly a month before the customer's payment clock even begins.
The Federal Reserve Banks' 2024 Report on Payments, based on the 2023 Small Business Credit Survey, identified slow-paying customers among the challenges faced by firms that invoice after delivering goods or services.
The practical response is to shorten the time between delivery, invoicing, and collection.
Build a same-day invoicing routine
Complete the service or reach the agreed project milestone.
Confirm the work was delivered and obtain any required approval.
Generate the invoice using the agreed contract terms.
Include the purchase order number, billing contact, itemized services, and supporting documents where required.
Provide a convenient, secure payment method.
Record the due date and schedule follow-up reminders.
For recurring services, set a consistent billing day. For project work, assign invoicing responsibility to a specific person rather than assuming somebody will remember.
Avoid invoice errors that delay payment
A customer may have a legitimate reason to reject an invoice that lacks a required purchase order, uses the wrong legal entity name, contains an incorrect tax amount, or goes to the wrong department.
Before sending an invoice to a large company, confirm its vendor registration rules and approval process.
For a new business customer, ask who approves invoices, whether a purchase order is required, and how payment status can be checked.
This small administrative step can prevent weeks of unnecessary back-and-forth.
4. Use a Professional Payment Reminder System
Many owners avoid following up because they fear damaging a client relationship. Others send reminders only when they urgently need money.
Both approaches are risky.
A consistent, polite collection process makes payment a normal part of doing business rather than a personal confrontation.
A practical invoice follow-up schedule
| Timing | Action |
|---|---|
| Invoice sent | Confirm receipt and payment instructions |
| 3–5 days before due date | Send a friendly reminder |
| Due date | Send a concise payment notice |
| 3–5 days overdue | Contact the accounts-payable team |
| 10–14 days overdue | Request a specific payment date and identify any dispute |
| 30 days overdue | Review escalation options and the customer's payment history |
Adjust this schedule to the contract, customer requirements, industry practices, and any applicable legal rules.
Use a message that protects the relationship
Subject: Payment Status — Invoice [Number]
Hello [Client Name],
I'm following up on invoice [Number] for [Project or Service], totaling [$Amount], which was due on [Date].
Could you please confirm whether the invoice has been approved and provide the expected payment date? If any documentation is missing or an issue needs to be resolved, I'm happy to address it promptly.
Thank you for your help.
This message is firm enough to create accountability without accusing the customer of deliberately withholding money.
If the client says the invoice is awaiting approval, ask who is responsible for the next step and when approval is expected. If the customer disputes the work, document the specific issue and agree on a process for resolving it.
A vague promise is not a collection plan. A named contact, a specific action, and a date are far more useful.
5. Choose Payment Tools That Fit Your Business
The right payment system should make it easier for customers to pay, reduce administrative work, and provide clear records. It should not introduce fees or complexity that outweigh the benefits.
The Federal Reserve's payments research has documented the difficulties small businesses face with processing fees, delayed settlement, and time-consuming payment procedures.
Consider these options according to your business model.
Invoicing and accounting software
Tools such as QuickBooks, Xero, and FreshBooks offer invoicing and accounting workflows. Depending on the plan and integrations, features may include recurring invoices, payment reminders, expense tracking, reconciliation, and reports on outstanding customer balances.
These systems are particularly useful when an owner is managing dozens of invoices and can no longer reliably track everything in spreadsheets or email.
Online payment links
Payment links allow customers to pay an invoice through a supported payment provider without having to arrange a paper check or manually initiate a bank transfer.
They may be useful for consultants, designers, repair businesses, agencies, and other service providers.
Before choosing a provider, compare transaction fees, deposit timing, chargeback procedures, refund rules, supported payment methods, and monthly charges. Card payments may be convenient but can cost more than some bank-transfer options.
ACH bank transfers
ACH transfers are commonly used for business-to-business payments in the United States. They can be appropriate for recurring invoices and larger payments when both parties support the method.
Processing and availability depend on the payment arrangement, bank, and transfer type. Do not promise a specific settlement time without checking the provider's terms.
Recurring billing and automatic payments
Businesses providing monthly services can reduce forgotten invoices by offering authorized recurring billing.
Obtain the customer's permission, disclose the schedule and amounts, provide required notices, and maintain a clear cancellation or change process.
Automatic payment is not suitable for every contract, but it can reduce repeated administrative work and make collections more predictable.
How to select a tool
Compare three providers using the same hypothetical invoice amount. Calculate the processing cost, monthly subscription expense, likely settlement time, and any additional fees.
Choose based on the total cost of receiving and managing payments—not just the advertised transaction rate.
6. Protect Your Cash When a Major Customer Pays Late
A business that depends on one large client is vulnerable even when the client is reputable.
Suppose a marketing agency earns 60% of its monthly revenue from one corporate customer. If that customer delays approval or payment, the agency may struggle to cover payroll, software subscriptions, contractors, and rent.
The solution is to manage customer concentration deliberately.
Measure your largest-customer exposure
Calculate:
Largest-customer share = Revenue from largest customer ÷ Total business revenue × 100
If a company earns $20,000 per month and one client contributes $12,000, that client represents 60% of revenue.
This does not automatically mean the relationship is unhealthy. Large contracts can be valuable. It means the business should plan for the consequences if payment stops temporarily.
Practical safeguards include:
Maintaining relationships with several customers.
Avoiding unnecessary fixed costs based on one temporary contract.
Negotiating deposits or milestone payments when feasible.
Reviewing the payment history of major clients.
Building a reserve based on essential operating expenses.
Establishing a clear process for pausing new work when contractually permitted.
Diversification takes time. A freelancer should not abandon a reliable major client simply to achieve an arbitrary percentage. The objective is to avoid a situation in which one delayed payment threatens the entire business.
7. Build a Cash Reserve Without Waiting for a Perfect Month
Some business owners assume they can save money only after profits increase. Unfortunately, waiting for an unusually strong month can leave the business permanently exposed.
A reserve can begin with a modest, repeatable contribution.
Calculate essential monthly expenses, including payroll, rent, insurance, necessary software, utilities, loan obligations, and other costs that cannot easily be eliminated.
If these expenses total $8,000 a month, a reserve equal to one month of essential expenses would be $8,000. A three-month target would be $24,000.
These are planning examples, not universal requirements. A seasonal business, a freelancer with low fixed costs, and a company with employees will need different reserve levels.
Start with an achievable first target, such as $500 or $1,000, then increase it gradually.
A business receiving $15,000 in monthly customer payments could, for example, transfer 2% of collected revenue into a separate reserve account. That would equal $300 in a month when the full $15,000 is collected.
The transfer should be based on actual cash received and balanced against taxes, payroll, debt obligations, and other essential bills. Do not transfer money needed for near-term commitments merely to meet a savings target.
Keep the reserve liquid and accessible, and compare account fees, deposit insurance eligibility, and withdrawal conditions before selecting an account.
The most important principle is consistency. A small reserve will not solve every cash crisis, but it can reduce dependence on emergency credit when a customer pays late.
8. Reduce Expenses Without Damaging Your Ability to Earn
When cash gets tight, cutting expenses may be necessary. However, indiscriminate cuts can create new problems.
Canceling essential insurance, reducing quality-control measures, or eliminating a tool that generates customers may save money briefly while increasing future costs.
Use a structured review instead.
Divide expenses into three groups
Essential operating costs: Payroll, necessary insurance, critical equipment, rent, and services required to deliver contracted work.
Negotiable costs: Supplier terms, software plans, phone contracts, shipping arrangements, and some professional services.
Deferrable costs: Nonessential upgrades, unused subscriptions, optional equipment purchases, and projects that do not support immediate business needs.
Review the second and third groups first.
For example, a small design agency paying for five overlapping software subscriptions might be able to consolidate tools. A contractor might negotiate supplier delivery schedules to reduce inventory sitting unused. A retailer might reduce slow-moving stock rather than repeatedly purchasing products that remain on shelves.
Calculate the actual savings
If a business cancels a $75 monthly subscription, it saves $900 annually before considering any replacement costs.
If it negotiates a $200 monthly reduction in supplier or service costs, the annual savings would be $2,400.
These examples show why small recurring expenses deserve attention.
However, do not accept a longer payment delay from a supplier without calculating the cost of lost discounts, penalties, or relationship damage. A short-term cash benefit can become an expensive arrangement if the terms are unfavorable.
9. Consider Financing Only After Comparing the Total Cost
When unpaid invoices threaten payroll or essential bills, outside financing may be appropriate. But borrowing should not be the automatic first response to a collection problem.
The financing option needs to fit the size, timing, and cause of the cash shortage.
Business line of credit
A business line of credit can provide access to funds when cash receipts fluctuate. Depending on the lender, it may involve variable interest rates, annual fees, draw fees, collateral, personal guarantees, and other conditions.
It is generally more useful when the business has a credible repayment plan and a temporary funding gap—not when recurring losses make repayment unrealistic.
Invoice factoring
Invoice factoring involves selling eligible unpaid invoices to a third party at a discount. The factor generally collects payment from the customer and retains its agreed fee.
For example, if a factoring provider advances $8,000 against an eligible $10,000 invoice, the business receives cash sooner but does not receive the full invoice amount upfront. The final amount depends on the agreement and fees.
Factoring may help businesses with creditworthy commercial customers, but costs can materially reduce profit margins. Review recourse provisions, reserve requirements, notification to customers, collection practices, and the total amount payable.
Invoice financing
Invoice financing may allow a business to borrow against unpaid invoices without selling them outright. The lender's security arrangements and collection process depend on the agreement.
Compare the annualized cost where it can be calculated, origination fees, repayment requirements, collateral, personal guarantees, and consequences if the customer pays late.
Merchant cash advances
Merchant cash advances can be particularly expensive and may involve repayment tied to future card sales or other business receipts.
Do not evaluate an offer solely by the amount deposited into your bank account. Compare the total repayment amount, payment frequency, estimated duration, and effect on daily operating cash.
The Federal Reserve has highlighted that merchant cash advances and invoice factoring may use factor rates or fees rather than expressing costs as a conventional annual percentage rate. That can make comparisons difficult.
Request the full cost in dollars and, where possible, an annualized comparison before signing.
A safer financing decision
Before accepting any offer, answer these questions internally:
What exact bill or operating need must the funds cover?
When is the customer expected to pay?
What happens if payment arrives 30 days later than expected?
How much will the financing cost in total?
Can the business make repayments while paying employees, suppliers, and taxes?
Is there a less expensive alternative, such as a deposit, payment plan, supplier negotiation, or direct collection?
If the business cannot explain how it will repay the financing, additional borrowing may postpone rather than solve the underlying problem.
10. Handle Seriously Overdue Invoices Before They Become Bad Debt
An invoice that is a few days late requires a different response from one that has remained unpaid for several months.
As the delay increases, the owner should gather documentation, establish whether the customer disputes the charge, and assess whether continued informal reminders are effective.
Create an invoice-aging report
Group outstanding invoices by age:
| Invoice age | Recommended action |
|---|---|
| Not yet due | Confirm documentation and payment instructions |
| 1–30 days overdue | Follow up with the accounts-payable contact |
| 31–60 days overdue | Escalate to the responsible manager and document the dispute |
| 61–90 days overdue | Review the contract and consider professional collection advice |
| More than 90 days overdue | Assess legal, collection, and accounting options promptly |
The table is a general workflow, not a legal deadline. Contract terms, limitation periods, industry rules, and applicable state law may require a different approach.
Keep evidence organized
Retain the signed contract, purchase orders, invoices, proof of delivery, approvals, relevant emails, payment promises, and records of disputed items.
If the customer claims that work was incomplete, ask for a written explanation identifying the specific problem. Resolve legitimate issues promptly while preserving the right to collect undisputed amounts where the contract and law permit.
Know when to seek help
A formal demand letter, mediation, a commercial collections agency, or legal action may be appropriate depending on the amount owed and the circumstances.
Collection agencies may charge a percentage of the amount recovered or use other fee arrangements. Review their contract carefully.
Before filing a lawsuit or threatening legal action, obtain advice on the applicable state law, contractual dispute-resolution provisions, filing costs, and the customer's ability to pay.
For small claims or other simplified court procedures, check the relevant state court's official website. Eligibility limits and procedures vary.
The objective is to make a rational recovery decision, not to spend more collecting a debt than the debt is worth.
11. Use AI and Automation to Reduce Administrative Delays
Manual invoicing creates repeated opportunities for mistakes: forgotten reminders, missing documents, inconsistent follow-up, and invoices that are sent days after work is completed.
Automation can help, but it should support a clear process rather than replace one.
Practical tasks to automate
Generating recurring invoices.
Scheduling payment reminders.
Flagging overdue accounts.
Categorizing expenses for review.
Creating weekly lists of outstanding invoices.
Producing a cash-flow forecast from verified accounting data.
Drafting polite collection emails for human approval.
Accounting platforms such as QuickBooks, Xero, and FreshBooks may provide some of these features, depending on the plan and integrations.
A spreadsheet can also work for a small operation. Useful columns include customer name, invoice number, invoice date, due date, amount, status, last contact date, promised payment date, and next action.
Use AI carefully
AI can draft a reminder, summarize an aging report, or help categorize spending. It should not independently determine whether a customer has breached a contract, invent a payment history, or send threatening collection messages without human review.
Protect sensitive customer and financial information. Use appropriate access controls and avoid placing confidential invoices, bank details, or personal data into AI services without reviewing their privacy and data-handling terms.
Automation is most effective when it reduces repetitive work and helps owners act earlier.
Small business owners can also use artificial intelligence to reduce repetitive administrative work, organize customer communications, and improve daily productivity. If you're looking for practical options, explore our guide to the 7 Best AI Tools for Small Businesses in 2026 to discover tools that may help streamline operations and free up more time to focus on getting invoices paid and maintaining healthy cash flow.
12. Learn From Three Realistic Small-Business Scenarios
The following scenarios are illustrative examples based on common business situations. They are not presented as independently verified interviews or named company case studies.
Scenario A: The independent contractor
A contractor completes $12,000 of work for a commercial customer. Payment is due in 30 days, but the customer takes another 20 days to approve the invoice.
Meanwhile, the contractor must pay employees, purchase materials, maintain insurance, and cover vehicle expenses.
The immediate response: Confirm the approval process and request a specific payment date. Identify which documents or signatures are holding up the invoice.
The long-term response: Negotiate milestone billing for future projects, confirm purchase-order requirements before work starts, and forecast payroll against realistic collection dates.
The alternative: If the client refuses revised terms, price the contract to reflect its financing burden and avoid committing to more work than the business can fund.
Scenario B: The marketing freelancer
A freelancer manages five clients but allows each one to pay whenever convenient. Several payments arrive late in the same month.
The freelancer has no clear view of which customers are reliable and ends up using a personal credit card for ordinary expenses.
The immediate response: Create an invoice-aging report and contact overdue customers individually. Request clear payment dates and identify any disputed invoices.
The long-term response: Use written contracts, deposits for larger projects where appropriate, milestone payments, and scheduled recurring invoices for ongoing work.
The alternative: Offer different service packages with payment terms suited to each customer, rather than providing the same informal credit arrangement to everyone.
Scenario C: The small online retailer
A retailer has strong sales but spends too much cash replenishing slow-moving inventory. At the same time, card processing and supplier obligations reduce the cash available for new orders.
The immediate response: Identify which products generate sales and which products tie up cash. Delay nonessential reorders and review upcoming supplier commitments.
The long-term response: Track inventory turnover, forecast seasonal demand, and review the actual margin after shipping, returns, processing fees, and other direct costs.
The alternative: Negotiate smaller replenishment orders or more frequent deliveries if the supplier's pricing and terms make that practical.
These examples reveal a common lesson: the correct solution depends on the cause of the shortage. Late collections require collection improvements; excess inventory requires purchasing discipline; recurring losses require a broader financial review.
13. A 30-Day Plan to Improve Business Cash Flow
A practical system should be simple enough to maintain during a busy week.
Days 1–7: Find the problem
List every unpaid invoice and its due date.
Identify the largest overdue balances.
Calculate essential bills due over the next four weeks.
Estimate the cash-flow gap under a delayed-payment scenario.
Contact customers whose invoices are overdue.
Confirm that future invoices contain complete payment instructions.
Days 8–14: Improve collection procedures
Introduce a standard payment-reminder schedule.
Send invoices immediately after approved milestones.
Review whether deposits or progress payments are appropriate.
Check that customer purchase-order requirements are met.
Compare available payment methods and processing costs.
Days 15–21: Reduce avoidable pressure
Review subscriptions and recurring expenses.
Identify slow-moving inventory or unnecessary purchases.
Negotiate supplier terms where commercially reasonable.
Compare financing alternatives only if a genuine funding gap remains.
Establish an initial reserve target.
Days 22–30: Build a repeatable system
Update the 13-week cash-flow forecast.
Review customer concentration and payment reliability.
Set weekly invoice follow-up time.
Automate recurring tasks where worthwhile.
Measure the average time between invoicing and collection.
Review overdue balances and decide which require escalation.
At the end of the month, compare the results with the starting position. Look for changes in overdue invoice totals, days to payment, collection costs, reserve balance, and forecast accuracy.
A single month will not solve every structural problem, but it can reveal whether the new process is improving control over the business's money.
14. The Business Numbers Every Owner Should Monitor
Owners do not need an elaborate financial dashboard to understand whether collections are improving. A small set of measures can reveal developing risks.
Days sales outstanding (DSO): An estimate of how long the business takes to collect its credit sales. A simplified calculation is average accounts receivable divided by net credit sales, multiplied by the number of days in the period. Use consistent accounting definitions when comparing periods.
Overdue invoice percentage: The value of overdue invoices divided by the total value of outstanding invoices, multiplied by 100.
Largest-customer concentration: The percentage of revenue contributed by the biggest customer.
Cash runway: How long available cash can cover essential outflows under a stated scenario. The estimate should account for expected collections and avoid assuming that every invoice will be paid on time.
Collection cost: The fees, financing expenses, staff time, and other costs incurred to receive payment.
Operating cash reserve: Cash set aside for disruptions and unexpected expenses, measured against essential monthly operating costs.
Review these figures weekly when cash is tight and monthly when operations are more stable. Rising sales are encouraging, but they should not conceal deteriorating collections or a growing dependence on short-term borrowing.
15. Trusted U.S. Resources for Small-Business Owners
Owners facing payment problems can use established organizations to research financing, payment practices, and business support.
Federal Reserve Banks — Small Business Credit Survey: Research on small-business financing, payments, and operating challenges. The survey provides evidence about the experiences of participating firms rather than a guarantee of outcomes for every business.
U.S. Small Business Administration (SBA): Guidance on business planning, financing options, and local assistance. SBA-backed financing depends on program eligibility and lender approval.
Small Business Development Centers (SBDCs): Local business-advising organizations that can help owners review cash-flow forecasts, business plans, and financing preparation. Services and availability vary by location.
SCORE: Mentoring and educational resources for small businesses, including financial planning and business operations.
QuickBooks Small Business Insights: Reports on payment delays, cash flow, and small-business operating experiences. Review the survey dates and methodology before applying a statistic to a specific industry.
Your state's official court and business websites: Information on business registration, applicable collection procedures, court rules, and local legal requirements.
These resources complement professional advice. A CPA or qualified accountant can help assess accounting treatment and cash forecasts; a business attorney can review contract and collection questions; and a qualified financial professional can help compare borrowing options.
A Practical Standard for Every New Customer
Before accepting a substantial new project, establish the expected payment schedule, identify who approves invoices, confirm required documentation, and determine how much cash the business must spend before receiving the first payment.
A customer with a large budget is not necessarily a low-risk customer. A profitable contract can still create financial pressure when payment terms are too long or the business cannot afford the waiting period.
The strongest collection strategy combines clear agreements, prompt invoicing, professional follow-up, sensible expense management, and realistic cash forecasting.
For American small-business owners, the objective is not to eliminate every late payment. It is to prevent a late payment from turning into missed payroll, expensive debt, strained supplier relationships, or a business crisis.
When money is treated as a process that must be managed—not simply revenue that will eventually arrive—owners gain more time to make decisions, more control over operating costs, and a better chance of sustaining the business through difficult months.
Editorial note: Survey statistics are attributed to their respective sources. Financial examples in this article are illustrative, not promises of results. Payment terms, collection procedures, financing costs, and legal rights vary by contract, provider, industry, and state.