Small-to-medium-sized enterprise (SME) owners are allowing their debtors too long to settle their invoices, with some delaying for months before chasing payments, a new study by accountancy system provider FreeAgent has revealed. The survey, carried out in partnership with YouGov, suggested that only 14% of small business owners look to chase payments inside the first week. More than 500 owners were surveyed by FreeAgent, which also indicated that almost a quarter of owners of businesses with less than five staff will wait between two and four weeks to request payment. 18% of owners will look to chase payments inside two months, with 4% and 2% waiting two to three and three or more months respectively. Unbelievably, 4% admitted to never chasing payments for unpaid invoices! Ed Molyneux, CEO of FreeAgent, suggested that small business owners may not wish to pester valuable customers: “'Not everyone enjoys chasing up their invoices, and it can feel awkward to demand payment from your customers – especially if you are friendly with them.”
Let SBF chase your payments
Skipton Business Finance (SBF) is able to offer bespoke invoice factoring facilities to SMEs, which include the provision of a industry-leading credit control team. An invoice factoring facility lets our experienced and professional team take the responsibility for securing the payments from your valuable customers, whilst advancing your business up to 90% of the value of your invoices straightaway. Invoice finance is a great way of unlocking a business’ cashflow and also ensuring that your unpaid invoices are settled quickly and efficiently. Why not browse our website for more information on how invoice finance solutions work, including invoice factoring and invoice discounting, give us a call on 0845 602 9354 or drop us an email at info@skiptonbf.co.uk.
We would love to help tailor a finance solution to your business!