Read the latest news about alternative business finance.
New research has highlighted the damage that unpaid invoices caused to small businesses in 2017.
A huge 62 per cent of invoices were paid late last year, with some unpaid invoices at least six months overdue. In total, over £21 billion wasn’t paid on time in 2017.
Big businesses were guilty of paying invoices after their due date, only paying around 50 per cent of invoices on time. Although some large companies turn payments around in five days, some companies admitted taking up to 113 days to process payments.
A national accountancy group believes that not enough is being done to tackle unpaid invoices. Despite the changes made by the government to improve payment times, there doesn’t seem to be any improvement yet.
Dealing with unpaid invoices is a challenge that all businesses must take steps to manage. However, late payments put smaller businesses, with no cash flow cushion, in a difficult position.
Not only are businesses left waiting for vital funds, they must also spend valuable office hours chasing payments. On top of that, they may be forced to reschedule supplier orders or turn down other paid work with no funds to fulfil them.
If you run a successful company, an unpaid invoice can force you to put growth plans on hold. However, if you’re already struggling, a delayed payment can mean dire trouble for your company’s health.
If a quick cash flow boost would be the perfect solution for you, a business cash advance is the perfect solution. With a simple application process, you could receive the funding you need in as little as 72 hours. To find out more, talk to one of our friendly advisors today!
Are you finding it difficult to grow your business because of unpaid invoices? Take a look at our simple-to-implement actions. You can take steps to minimise your customers’ payment times in a matter of minutes, at no extra cost!