Yet again the damaging affects of late payment on SME businesses in the UK has made the headlines. And this time you need to take action – NOW!
Phillip King, Small Business Commissioner, is asking that SMEs who experience this problem time and time again from the same culprits contact his Office.
The Commission is making it a priority course of action to try and stop large businesses reducing the credit they make available to SMEs and to erase late payment. Mr King has been writing to many offenders about the effects that late payment is having on SMEs and the economy. As a result, many of those businesses who have been contacted have in fact paid promptly.
FACT: SMEs are the backbone of the UK economy, bringing in 47% of the UK's revenue
Mr King is warning that many SMEs will risk going bust if behaviour and attitudes towards credit and late payment do not change, and soon!
As an SME owner you are already acutely aware of the importance of a robust cashflow and access to working capital. Yet that is easier said than done to achieve if you are waiting in excess of 45, 60 days + to be paid. You still have your own overheads to cover – rent, wages, utilities etc. What's more, lack of cashflow can effect the terms and relationships you have with suppliers. Cashflow is king, and without it your SME is at risk.
FACT: 50% of SMEs fail within 5 years due to lack of cashflow
In the meantime, take your own action against your late paying customers and talk to me about invoice finance today. It's the UK's most popular form of alternative finance. It's an effective way to ensure you keep your business cashflow fluid, seeing you have access to working capital and gain a greater financial stability for your business.
FACT: Over 44k UK businesses use invoice finance to stay in control of their finances
Also referred to as invoice factoring, the facility pays out on a business's issued invoices:
The facility is also inclusive of a credit control facility, meaning you don't have to spend time and effort chasing your outstanding invoices.
You can also choose to have a confidential facility known as invoice discounting or a facility whereby you can factor specific invoices which is known as selective invoice finance.
Invoice finance is ideal for all SME businesses – whether you're an established business, a startup, needing to restructure, working on an acquisition or wanting to maximise growth opportunities through cashflow fluidity.
With over 50 UK invoice finance providers, setting up your facility is quick and easy, often fully operational in under a week. You do not need to put up assets against your facility – your issued invoice acts as your guarantee.
Using the facility is easy too. You have a safe and secure online portal which you use to copy in all issued invoices. It gives you a comprehensive overview of all your invoices covered by the facility, along with their payment status so you have complete control over your cashflow situation.
Put a stop to the burden of late paying customers NOW!
Call me directly on 07785 596053, or you can email me on firstname.lastname@example.org – you won't regret it, only that you didn't do it sooner.