Newly Appointed Small Business Commissioner Brands Late Payment “toxic”

The new Small Business Commissioner, Liz Barclay, has branded the late payment effects on SMEs “toxic” as she pledges to lead the Government’s Prompt Payment Code, to overcome the damaging, often fatal effects late payment has on businesses.

Her appointment, announced this week, will see the position given much greater authority and responsibilities including powers to launch investigations to a much broader degree, levy fines and compel payment.

In a statement, Ms Barclay, who officially takes the position in June, has said that pressure on larger businesses to pay their smaller suppliers promptly will levitate mounting stress on smaller businesses as they wait 60 day plus for their invoices to be settled, citing that SMEs will instead be able to “turn their attention to their next client and next order rather than chasing up late payments and worrying about their cash flow".

Taking a highly motivated stance on late payment, the new appointment should give many SMEs a boost of confidence at a time when challenges are escalating.  However, SMEs might well need to take matters into their own hands in the meantime if they are the subject of consistent late payment.  

As an independent broker for over 28 years, I have spent much of that time highlighting the crippling implications late payment has on a business and I agree with Ms Barclay – it is toxic. How can a business manage cashflow to pay their own overheads, staff and negotiate better terms with suppliers when they await payment for as much as 90 days? 

It’s why, decades ago, I became passionate about promoting invoice finance in the UK – a way of accelerating the invoice / payment cycle - and I am now considered an expert within the industry. 

Invoice finance turns issued invoices into immediate cashflow.

Sadly, late payment is only getting worse – hence the Government’s intervention and new powers for the Commission.  Last year over £23billion was owed to SMEs in late payments – up by over £10m from the year before.  As a result, SMEs are closing, facing bankruptcy and jobs are being lost – around 50,000 each and every year!

Big businesses should be honouring their commitments – they’ve taken a service or product so pay for it. Yet they don’t. And it’s why over 44,000 UK businesses use invoice finance so they are paid on time, every time.    

Invoice finance is a simple and effective finance solution that offers financial peace of mind, negating the threat of late payment.

• Issue your invoice as normal, copying in your invoice finance provider.
• You are advanced up to 90% of each invoice value within 24hrs (balance paid when customer settles).
• Comprehensive invoice data – issued, outstanding, paid – available to view on secure online portal.
• Optional credit control facility so invoice payment by your customers is managed on your behalf if you wish.
• Your invoice finance grows with your business, meaning it does not need constant renegotiation which could hinder growth at critical times.

With 50+ invoice finance providers, I have access to them all – this is because Capital Corporate Finance, which I founded nearly 30 years ago, is 100% independent. This ensures your SME is offered the right finance facility because I match the right provider to your business.  I also boast fast track status with direct access to underwriters and decision makers. As a result, your invoice finance facility is usually set up and fully operational in just a week or two.

Say “yes” to prompt payment with invoice factoring today – call me NOW so I can get your finance facility in place. Call me directly on 07785 596053 or email me at carole@capitalcorporate.co.uk