Why Late Invoices Are Just Expensive Customer Loans
So imagine you have a bunch of outstanding invoices with your customers. Now imagine those are really just like loans that you've made to those customers who get to use that money in their business, even though that money really belongs to you. I know, weird right? But it's true. The moment you remit an invoice you're essentially saying you owe me money because I did something for you. Whether or not that money is in the bank, under the mattress, or in the vault, it's technically your money. So the longer it sits in the volcano lair the longer it's on loan to your customer and unless you're charging late fees (and who doesn't love a good late fee?) you're getting 0 interest on that loan.
