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When a company is growing, finance executives must continuously balance the benefits of doing new business with the associated risks. On average, one in every 10 invoices becomes delinquent. So each time a business grants credit to a customer, it is taking a chance that the debt will not be paid. Obviously, this creates risks for the business’s cash flow and profitability, since one large unpaid invoice may have the potential to blow the bottom line, halt growth, or even trigger insolvency.
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