Despite the Government’s intervention this year, such as the Prompt Payment Code initiative, and the Federation of Small Businesses claiming that they are ‘continuing to create an environment for SMEs to prosper’, the fact is, late payment is getting worse and SMEs are more vulnerable than ever.
FACT:Two fifths of SMEs have been forced to take legal action over late payment in the last year.
Add into the equation the Christmas season (and it’s fast approaching) and many SMEs will be struggling to stay afloat.
FACT: SMEs are being forced into a position of not being able to rely on their earned revenue to pay bills or use it to expand.
This is why invoice finance is the UK’s most popular form of alternative finance because it takes away the burden of late paying customers; and here’s how:
An SME issues their invoice, copying in their invoice finance provider.
Up to 90% of their invoice is paid by the provider, within 24hours.
The balance is paid once the SME’s customer has settled their invoice.
The service is inclusive of a credit control facility so the SME doesn’t even need to chase payment.
All bookkeeping is visible via a secure online portal for complete control over monies paid and owed.
FACT:Invoice finance guarantees a fluid cashflow the entire time an SME is issuing invoices.
In the UK there are currently over 50 providers of invoice finance; here at Capital Corporate Finance we have access to all of them, so on your behalf we can approach the right provider to present to you a tailored and flexible finance facility. We know which lenders, for example, lean towards start-ups, established, large or small businesses.
FACT:35% of SMEs have taken out short term loans to cover the shortfall of late payment to stay afloat.
Over 40,000 UK businesses currently enjoy the peace of mind that invoice finance brings.
FACT: As expert witnesses in the field of alternative finance, we are market leaders in providing SMEs with advice and the setting up of their invoice finance facility.
So call us today and see how invoice finance can help your business be relieved from the pressures of late paying customers. Instead, look at continued growth and financial stability through a fluid cashflow and available working capital – FACT!