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SMEs Advised To Act Against Unpaid Invoices

A stark warning has been issued to SMEs over the burden of unpaid invoices.

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Unpaid invoices... the burden is real. It is damaging to a business. It eats up cashflow reserves and is the biggest reason businesses fail.

And in the current pandemic, this burden and threat is increasing.

However, SMEs can protect themselves against late paying customers.

FACT: That's why more businesses than ever are turning to invoice finance, also referred to as invoice factoring, to soften the blow of late payment and help assure cashflow stability.

Tens of thousands of SMEs up and down the UK are riddled with debt because customers have not yet settled their invoices, many outstanding from pre-lockdown; and others who are simply paying even later than usual as a result of the pandemic crisis.

FACT: SMEs are experiencing a 25% increase in unpaid invoices.

This has hugely detrimental effects on a business... they cannot meet their own financial obligations, their cashflow and working capital dries up leaving them with little room for growth, or even survival.

The UK's most popular form of alternative finance, invoice finance releases capital on unpaid invoices, which is why more than 44k UK businesses are using this as a means of funding their cashflow.

FACT: Facilities are competitively priced and offer peace of mind and financial stability.

  • Invoice finance immediately frees up the cash locked up in unpaid invoices.
  • It pays up to 90% of each issued invoice, within 24hrs (balance when invoice is settled)
  • Facility has inclusive credit control facility, should you wish, freeing your SME up to concentrate on making money, not chasing money.
  • Monthly charges are both reasonable and competitively priced and light on security requirements, sometimes requiring no PG’s at all.

FACT: Invoice finance facilities can also include bad debt cover as an add-on.

SMEs are notoriously nervous about chasing unpaid invoices, even potential bad debts – are you scared of alienating customers, feel too uncomfortable or simply have no time to chase them?

Invoice finance negates that problem because your facility is inclusive of a credit control facility whereby your provider manages the credit control function in a courteous and polite manner, as if they were your own credit control team.

Managed online, stored securely on your own unique portal for you to upload copies of all your issued invoices, each business account conveniently and easily provides an overview of all your paid and outstanding invoices. And of course, each invoice finance provider offers superb customer service with dedicated Account Managers on hand to resolve any queries a business may have.

With a range of invoice finance facilities to choose from including the confidential service known as invoice discounting and selective invoice finance whereby a business can effectively 'cherry pick' which invoices it factors.

Carole Roe, Founder and Managing Director, of Capital Corporate Finance, is ideally placed to arrange your facility for you. For over 27 years she's been arranging SME finance for thousands of businesses. What's more, she played an influential part in the launch of invoice finance broking in the UK and is one of the few expert witnesseses in invoice factoring.

As an independent broker, CCF has access to all UK invoice finance providers – over 50 – many of which give CCF fast track status; so arranging your finance through CCF is both quick, and often secured at better rates, than if you were to go direct.

So if you want your business to make money, rather than chase unpaid money, speak to the CCF team today! You can call Managing Director, Carole, directly on 07785 596053, or email her on carole@capitalcorporate.co.uk