Former Dragon’s Den businessman James Caan is urging small businesses to take more action against late payment. Getting paid is imperative if you want to keep your business cash flow healthy, and the serial entrepreneur should definitely know what he’s talking about! Caan has highlighted alternative funding, such as invoice finance, as a way for businesses to take control of their finances and get ahead of the competition.
Caan suggests that small businesses need to act and take on the responsibility for dealing with non-payment themselves. He says: “The basics are of course to invoice on time, promptly and accurately. Invoices are also to ensure that your quote has been accepted, the product or service delivered and the terms and conditions of payment agreed in advance.”
“If you do nothing else but stick to these simple rules, then your business will not only survive, but it will actually have every prospect of growing and contributing to the economic recovery that we so dearly seek.” However, there’s more that you can do to ensure your business goes from strength to strength. Alternative funding could be the answer – not only according the James Caan, but also the government.
Caan continues to comment that though the Government is keen on encouraging the banks to lend, alternative funding mechanisms such as factoring and invoice discounting could provide a new answer to some of the common problems of late payment and tight cash flow. Invoice finance is fast, flexible, and is gaining popularity amongst all sorts of businesses, from tiny start up ventures to SMEs with million pound turnovers.
So, if your business needs a new answer to it’s problems in 2013, it might be worth taking James Caan’s advice into consideration – and perhaps looking into invoice finance in the process.