London, England – 9/21/2017
New research has shown that nearly half of British SMEs have turned down an order or agreement as a result of being unable to deliver work.
Recent studies reveal that “unjust behaviour” has been the predominant cause of small and medium-sized enterprises turning down paid projects. This mostly constitutes agreements not covering costs with 25% of contracts being priced too cheaply, 24% of customers being a “bad payers” and 23% of businesses being offered unjust payment provisions with insufficient delivery time.
50% of SMEs have missed out approximately £10,000 each in the previous year because of refused, with 28% losing between £20,001 and £30,000.
UK business outlook is positive, however, with 60% of business’s accepting that Brexit won’t have any impact on whether they need to refuse work. Additionally, 66% of businesses didn’t have to invest their personal finances in the business over the previous 12 months.
Nucleus Commercial Finance’s CEO, said, “Unfortunately, small and medium-sized enterprises have to reject orders and agreements because of unfair asks and unjust payment provisions. Unrealistic terms and bad/late payers could have a severe impact on business, particularly start-ups.”
He adds, “This is part of a broader issue, not every entrepreneur has the resources or time to run behind on invoices or risk their business by working with erratic suppliers. Research has also found that more than 27% of SMEs are currently in “survival mode” pausing their investment plans. They can’t afford to turn down work, but more than half of them are doing so.”
Alternative finance providers, such as Nucleus Commercial Finance, offer services to ease the stress for SMEs, freeing up time and funds to focus on business rather than worrying about cash flow or chasing invoices.
Nucleus provides its services with flexibility and endeavours to accommodate conventional and unconventional financial needs alike. Their in-house specialists offer a higher level of flexibility and support as found in any traditional bank finance. To find out more about them, visit https://nucleuscommercialfinance.com/.
Nucleus Commercial Finance Ltd.
2 Gees Court
+44 (0)207 839 9451