Research indicates that one in ten UK businesses still have to wait up to 90 days for their invoices to be settled. Late payments impact on cash flow, which in turn can stunt the growth of your business.
Invoice Financing – Tackling the Problems of Late Payments can be a nightmare
As well as being an administrative nightmare, late payments can have wider implications. Delayed access to outstanding funds means SMEs are less able to invest for the future. This is where invoice finance steps in.
Bridging that gap between completing work and waiting for payment can be difficult. If like many SMEs you are paying out for your costs and waiting too long for payment, invoice finance is a fantastic option.
Using your outstanding invoices as guarantee, an invoice financier can lend you a percentage of the invoice value, usually around 85%. Once your customer pays, you are sent the 15% outstanding minus their fees.
Growth should be a continuous process, so don’t allow late payments to slow you down. There are different types of invoice financing available. Talk to us today
