Big business late payers urged to 'pay up'

   

A leading invoice finance provider says that larger businesses are continuing to monopolise on their dominant market position and delay invoice payment to small and medium sized businesses.

With the average length of time small and medium sized businesses wait beyond agreed payment terms for an invoice to be paid currently standing at 41.5 days according to Bacs, Bibby Financial Services is urging debtors to ‘pay up’.

The recent Bacs research showed that small and medium sized businesses are owed a collective £30 billion in late payments, a rise of over £11 billion in the last two years. Furthermore, the number of small and medium sized businesses reporting that they are experiencing payment delays has risen by over 65 per cent since last year. With economic pressures continuing to affect small and medium sized businesses across the UK, payment delays can have a significant effect on cash flow.

However, there are some simple ways to increase the flow of cash into a business. Invoice finance or factoring is one such option. You can find out more about the options available to you in our credit control section.

Edward Rimmer, Bibby Financial Services’ chief executive, UK and Ireland, told us:

“Small and medium sized businesses are often unaware of the support that is available to them when chasing customer late payment. Thousands of UK businesses have benefitted from invoice finance, which provides both an immediate and ongoing source of funding against customer invoices as well as a comprehensive collections service which includes the chasing of outstanding payment on a clients behalf.

“With bank finance increasingly more expensive and difficult to obtain, it is vital businesses have effective credit management processes in place to safeguard cash flow. Invoice finance can help bridge the time lag between issuing an invoice and being paid, as well as saving time spent making calls to chase customers for payment.”

Invoice Finance articles on Bytestart

• Invoice finance and factoring - the pros and cons
• Tips for choosing an invoice finance provider
• How to manage your cashflow during a recession

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