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Fast Track SME Payment Push

Large businesses are signing up to the Good Business Pays initiative to ensure smaller suppliers are fast tracked for prompt payment to aid SME recovery, growth and future prosperity. 

  • News

Support is picking up pace for the Good Business Pays campaign, an initiative that encourages large organisations to pay their smaller suppliers promptly – within 30 days.

The campaign which urges big businesses to fast track payment to their smaller suppliers is asking businesses to sign up to show their support. One of those leading from the front is Mastercard - and, in doing so, they’ve agreed to pay suppliers within 30 days.

As well as prompt, fast track payment for suppliers, businesses are also being asked to review their payment structure every three months to make sure they’re being as effective as possible.  They’re also being encouraged to release payment performance data and invest in online technology that aids prompt payment.

  • 43% of larger SMEs are victims of late payment.
  • 50% of smaller SMEs fall foul of late payers.
  • 77% fear chasing payment damages the client relationship.
  • 76% fear that chasing could damage their chance of actually even being paid at all.

This prompt payment initiative will help support SMEs in their recovery and growth as they come out of Covid restrictions, a time when many businesses have experienced worsening late payment.  The campaign has the full support of the Federation of Small Businesses, British Chambers of Commerce, the CBI and the Institute of Directors.

I fully support the Good Business Pays campaign, however, the reality is it’s going to take a good while for SMEs to see the benefit. In the meantime, that’s where I come in. So, let me ask you some questions…

You’re not alone. It’s also why nearly 50,000 SMEs use factoring, also referred to as invoice finance, to guarantee their cashflow by immediately advancing monies on invoices that you raise. When it comes to cashflow your debtor book can be your best asset! 

Here’s another question for you. How much are you currently owed by suppliers?  In the UK the Government currently estimates that a staggering £23.4 billion is owed in outstanding invoices.

Invoice finance ensures a fluid cashflow, does not risk assets, is cost effective and helps SMEs grow faster – around 12% more than their counterparts who do not have a facility; and operationally it couldn't be simplier to manage:

  • You simply issue your invoice as usual.
  • Access your funding within 24hrs (up to 90% of each invoice value - balance when your customer settles).
  • Facility provider arranges invoice payment from your customer, although you have the option to continue to manage the credit control function if you prefer.
  • Your entire sales ledger management information – invoices issued, funded, settled – are available on a secure online portal.

Late payment is toxic. It damages your SME, putting you at risk. But it’s time to take control of your cashflow. And with invoice finance you can do exactly that. 

FACT: Late payment is getting worse.

That’s why you should call me today! I will get your invoice finance facility agreed and fully operational within just a couple of weeks. There are over 50 invoice finance providers in the UK market. I have arrangements with them all, thanks to my independent broker status. I was one of the first brokers to the invoice finance market 29 years ago and as such deal directly with underwriters and decision makers.

You’ll have peace of mind, knowing you will be paid promptly, even if your customers are notoriously bad at paying you on time.

Call me directly on 07785 596053 or email on carole@capitalcorporate.co.uk