Late payment of invoices is leading to cashflow problems for many small businesses

In an ideal world, all customers would pay for goods or services as they take them and cashflow would not be a problem. The sun would always shine and we’d live in a never-ending boom!

Unfortunately, in today’s highly-competitive corporate world, it’s not that easy - with many customers demanding 30, 60 and even 90 day credit terms.

A recent survey of small businesses indicated the problem of late payment is worse now than 3 years ago with the average sum being owed reaching almost £64,000 and almost two thirds of respondents indicated that late payments are putting their business at risk of failure.

The bad news is that many businesses still face the perennial requirement to pay wages and suppliers, whilst waiting for the cash from their own customers to come in.

This can cause a strain on any business, particularly one which is looking to grow and reach its full potential!

It has become increasingly difficult to plug this cashflow gap using the traditional sources of bank funding and many are having to use personal funds to keep the wolf from the door. The lucky ones who can secure bank finance may well be paying significantly more than in previous years and having to provide increased levels of personal security.

A Flexible Alternative – Invoice Finance

The smart owner-managers have realised they can release the cash tied up in their invoices via invoice finance providers. These alternative lenders will buy the outstanding invoices and advance as much as 100% within 24 hours. This takes the strain out of the cashflow and provides a much-needed boost to a business’s liquidity.

At Skipton Business Finance we have continually kept our doors open to all sorts of owner-managed businesses, providing working capital facilities throughout the good times and the bad. We are committed to supporting SMEs and assisting businesses reach their full potential, as, after all, their success determines our success.

Contact us today

If you need an Invoice Factoring solution and access working capital from as little as £25,000 up to £5m, then look no further than the industry's premier lender. 

Backed by Skipton Building Society, the UK's 4th largest building society which has over 800,000 members and 100 branches, it really does mean that we look at the individual merits of a business as part of our underwriting criteria, not just their credit score.

If you would like a no-obligation FREE quote, please get in touch by ringing us on 0800 0854150 (call 0330 1232437 if ringing from a mobile).

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