Late Payment Is Fatal To SMEs – are you at risk too?

Recent evidence has suggested yet again that late paying customers are damaging the survival of SMEs.

Late payment is putting not only SMEs at risk of hardship and hampered growth but a survey cites 30% admit this is directly putting their employees at risk of losing their jobs each month.  Not to mention, worst of all, bankruptcy.

Recent findings* have revealed that the impact of late payment is seeing many SMEs struggling to survive after the Covid pandemic. It states that nearly two thirds of SMEs have an average of £15,370 of late payments on their books every week, with over £50billion currently owed to businesses nationwide. Sound familiar?

Many of these businesses wait over 60, even 90 days plus to get paid, despite having payment terms of 30 days. It’s shocking, don’t you agree?

A YouGov poll has also revealed that 30% of SMEs are laying off staff, making them redundant as a direct result of the crippling effects of late payment.

• Is your business at risk?
• Are you feeling the effects of late payment?
• Are you debating letting staff go because of late paying customers?
• Are you not paying yourself or taking less each month due to lack of funds?

The same poll also reveals a staggering 62% of SMEs spend time each week chasing payment.  Yet this chasing can be uncomfortable, awkward and sometimes damaging to your working relationships.

Yet, there is an answer - INVOICE FINANCE!  It pays out on your issued invoices – advancing monies, within 24hrs, of up to 90%, balance paid when your customer settles their invoice. Invoice finance ensures your invoices are paid on time, every time, ensuring you have a robust cashflow to not only pay your staff but also to invest in your business for growth and prosperity.

“For us, invoice finance offers a tangible cashflow solution and certainly no business should be managing without it. We are able to grow our business and importantly pay our contractors on time.” Hamilton Mayday.

The best bit? It’s so easy to use.

• Issue your invoice as normal, copying in your factoring provider via the secure online portal.
• You are paid up to 90% of each issued invoice (balance paid when invoice settled) straight away.
• As an option, your provider chases payment on your behalf as part of the inclusive credit control facility. If you choose to do this yourself you can do.
• Your secure online portal will display comprehensive details of your invoicing including those issued, paid, outstanding and disputed.
• There’s even an invoice factoring facility to choose from should you want to only factor selected, ad hoc invoices to cover larger seasonal needs or there’s a confidential facility whereby your customer will not be aware of the involvement of a third party.

Don’t you agree you need invoice finance?!

Businesses simply cannot survive without cashflow and working capital.  Cashflow is king. We think invoice finance is therefore your SME's ‘prince charming’!

As an expert witness in invoice finance, and an independent broker, and an absolute advocaat of invoice finance, there is no one better placed to arrange your invoice finance facility than me. 

I have full access to every provider in the UK and my knowledge ensures I perfectly match your business, your needs, your sector to the provider who understands your challenges and supports your industry.   I can set up your facility within a matter of weeks – this even includes switching providers if your current facility needs reviewing.

“We spoke to Carole on the Thursday and by the following Monday we had signed our new invoice finance facility.” Owner of major sportswear manufacturer.

Nearly 60,000 UK businesses are benefiting from invoice finance.  I see, every day, the peace of mind and financial security invoice finance brings to businesses just like yours!

With 30% of SMEs waiting over 3 months to get paid, isn’t it time you arranged your invoice finance facility today?  Call me on 07785 596053 or email me on carole@capitalcorporate.co.uk.

* Survey by Penny Freedom