There are funding facilities you can put in place, but you are not alone… Our Accountants Bolton can help you find the right funding for your business.
A recent survey by Credit Management Services business ‘Intrum Justitia’ found that 58% of SMEs surveyed across Europe are having to allow customers extensions beyond agreed payment terms, up from 37% in 2016 – suggesting the EU’s Late Payment Directive introduced in 2013 as somewhat ineffective.
The Late Payment Directive was introduced following research which revealed that across the European Union, thousands of businesses were entering into insolvency proceedings whilst waiting for invoices being paid, consequently having a negative impact on the economy.
If you’ve been or are being affected by late payments our Accountants Bolton can help. There are many options we can put in place to help you bridge the gap. Outsourcing being one of them, so we can manage your accounts for you ensuring you’re paid on time.
In the report from Intrum Justitia, it also found that 1 in 3 businesses had to either slow down, or stop their growth completely due to late payments and the impact on working capital.
Whilst the rise of alternative finance, and additional finance products available are helping businesses bridge the gap between when they should receive payment, and when they are actually being paid, there are many businesses who are still yet to understand how funding products are able to assist them. This lack of awareness could potentially leave the business exposed during this period.
Funding options such as invoice finance are able to assist businesses bridge this gap in cash flow, and can be implemented quickly to ensure continuity. Invoice finance for example, is very flexible, often allowing the business to choose which particular invoices it applies the facility to.
For more information on how you can bridge the gap, contact our Bolton accountant, Nicola Roby on 01204 534 031 or contact us via our enquiry form.
Want to find out how we can help you and your business? Get in touch today and let's have a chat.