El Paso Small Businesses Struggle with Increasing Late Payments and Cash Flow Issues

A recent report highlights a growing trend of late payments for small businesses in El Paso, with 59% of owners reporting overdue invoices, up from 47% last year. On average, businesses are waiting on $17,700 in unpaid invoices, which exacerbates cash flow problems even after payments are received. Nearly 39% of business owners have faced difficulties covering payroll due to late payments, with even small amounts causing significant strain. The report also notes that payment processing delays contribute to ongoing cash flow issues, prompting many owners to incur additional costs for faster access to funds. Legislative efforts, such as the proposed PACE Act, aim to address these challenges by improving payment systems.

Key Details: • 59% of small businesses report overdue invoices, a significant increase from last year. • Average amount owed per business is $17,700. • 39% of owners say late payments hinder their ability to cover payroll. • Legislative measures like the PACE Act are being considered to improve payment processing.