Small businesses in need of funding often face late payment issues, and this has become a prevailing problem throughout the SME sector. This is an even greater problem when faced with the uncertainty of the UK economic climate and the ongoing financial trouble in the eurozone. However, with invoice discounting and factoring solutions, your business can avoid getting caught with limited cash flow.
While many UK businesses are feeling the pressure from a still recovering economy, there is evidence that many are taking late payment collection seriously.
Hilton-Baird Collection services has found that many are adopting a back to basics approach to late payment collection. Many are being more proactive to stay on top of their financing.
Of the 247 businesses interviewed in January 2012, 69% issue constant payment reminders, while 47% suspend work or services. 45% write to debtors, and nearly half credit check new customers.
This shows businesses taking payment problems into their own hands. This has shown an improvement on the time time many businesses are waiting, on average this has fallen five days when compared to the preceding six months up to July.
Invoice Finance Solutions
If your business needs a direct solution to late payment problems, then invoice finance can help. You can take the pressure of chasing payments away from your business by employing a factoring lender, who can chase payments for you, while releasing 90% of funds immediately.
Factoring can take care of all your invoices at once, letting you get access to a large amount of funds at once. You can also use selective factoring, where you pick and choose the invoices which you release to the factoring lender. This gives extra flexibility, as you can pick the invoices which will give most benefit to your company.
You can also continue chasing your own payments with invoice discounting, which again offers a safe, secure and speedy resolution to cash flow and late payment problems.
Select Factoring has a range of solutions for late payment problems.