London, England – 8/31/2017
Reports show that late paymenthasdenied UK SMEs more than £250bn.
Unpaid invoices and expenses coupled with companies pursuing customers’ payments, along with long term payments are the core contributors. At the heart of the UK economy, SMEs account for 47% of private sector turnovers.
On average, businesses with turnover below £1m wait an average of 72 days for invoices to be paid, whilst business with £1-10m turnover wait 53 days. Similarly, businesses with £10m+ turnover wait an average of 48 days.
A suggested cause for the rise in late payment is the increasing demand for 90-day payment term from large companies.
According to the Spokesperson of Nucleus, “This move has demonstrated “scant regard” for small suppliers and in the latest survey; it was found that nearly 90% of British respondents have received late payments.”
They further added, “It’s clear that slow/late payments are an acute cause of concern for every SME. In another survey, it was found that around 23% of SMEs had reported they were at risk of closurebecause of late payments.”
Though firms view remaining bills as a drain on cash flow, invoice finance is a superb alternative finance source to overcome issues. By utilising invoice finance, a firm can invoice their customer, wherein 90% of the approved invoice is promptly advanced by the provider and the remaining 10% is paid once the balance is settled by the customer, to the provider.
Nucleus Commercial Finance has years of experienceproviding factoring and invoice discounting to businesses across the UK, offering more flexibility than a typical lender. To find out more about invoice finance, visit https://nucleuscommercialfinance.com/products/invoice-finance-services
Nucleus Commercial Finance Ltd.
2 Gees Court
+44 (0)207 839 9451