UK businesses are owed more than £64 billion, with more than half of this due to small businesses, new research has revealed. Each small business is now owed on average £45,000, up more than 15% on last year’s average total of £39,000, the study by BACS has found. Businesses have to wait on average 29 days after agreed payment terms for invoices to be settled, increasing from 25.6 days in 2011. The smallest firms are often those most badly affected, as large corporates take advantage and utilise their suppliers for a free line of credit. In recent months, the government has backed a campaign by small business representative bodies to help develop new measures to ensure payments are made promptly.
Invoice Finance as late payment solution
Many small businesses and SMEs are affected by late-paying debtors, which can severely impact cashflow and prevent a company from growing and reaching its full potential. However there are external finance solutions which are designed specially to help small businesses and SMEs unlock cash they have tied up in unpaid invoices. Having an invoice finance facility with Skipton Business Finance could help your business prosper and benefit from better cashflow and more available working capital. Browse our website to find out more about how invoice finance facilities, such as invoice factoring and invoice discounting, work.