What is late payment costing you?
Overdue invoices don't just sit there — they tie up working capital and soak up your team's time. Enter a few figures for an indicative picture of what your overdue book is really costing, and what recovering it could free up.
Your overdue book
Roughly what it costs you to borrow, or what idle cash could earn. 8–12% is typical for an SME overdraft.
Indicative cost
$1,100
tied up while these accounts sit overdue
- Finance cost of money tied up$390
- Time spent chasing (over that period)$710
- If it ran all year$6,695
How the estimate works
The finance figure is the cost of having that money unavailable for the average time it stays overdue — the amount outstanding, multiplied by your cost-of-funds rate, for that share of a year. The time figure values the hours your team spends chasing it. Together they show the running cost of an overdue ledger that most businesses never put a number to.
This is a general, indicative estimate for illustration only — not financial, accounting or legal advice, and not a quote. Your actual costs depend on your own circumstances. Merion's recovery fee is a commission agreed in writing before any work begins.