So, today was the day – the day that sizeable invoice was supposed to be paid. You’ve been anticipating this moment, knowing it’s a crucial cash injection for your business. You check your bank account with a sense of expectation… but the payment hasn’t come through. You reach out to your client, left waiting, hoping, while your expenses pile up.
Staff need paying, supplies need replenishing, and bills need covering.
Stressing about waiting for payment is something many business owners suffer with silently.
Barclays found in a recent survey that two fifths (39 per cent) of SME owners say their mental wellbeing has suffered as a result of late payments, with over a third (34 per cent) having had sleepless nights.
However, there is a fantastic solution rising in popularity that eliminates the stress of chasing down unpaid invoices to meet your payroll and cover your operating expenses!
Invoice financing is a brilliant, flexible, and efficient financial solution that could put the money your owed straight into your bank account in under 24 hours and it’s completely insured if the client does not pay you!
You get paid on time, every time.
The Struggle of Late Payments
Let’s talk about a problem that’s too familiar to many businesses – getting paid on time. Late payments are an unfortunate reality of today’s corporate landscape. Despite best intentions, many businesses find themselves extending 30, 60, or even 90-day credit terms to their customers.
With wages to pay, suppliers to compensate, and growth goals to achieve, this situation creates a damaging cashflow gap. Traditional bank funding has become increasingly difficult to secure, leaving many businesses either grappling with high interest rates or resorting to personal funds.
A survey by Federal Management and Frontline Collections found that 66% of SME owners have already had to supplement their Small Businesses cash flow with the use of personal funds. This includes many that have had to re-mortgage their homes and cash in pension policies.
Hannah Bernard, Head of Business Banking at Barclays, said: “Late payments is the single biggest cause of business failure”
Invoice Financing: The Added Advantages
Avoiding this struggle has become easier with Invoice Financing rapidly growing in popularity.
Pinnacle Business Finance offers this smart, flexible solution that unlocks the cash tied up in your outstanding invoices and keeps you insured against any losses.
This isn’t just a quick fix for immediate cash needs. It’s a service packed with additional benefits:
Efficiency: You can choose to outsource your credit control to us. This factoring option means we’ll manage your credit control and sales ledger, freeing up your time to focus on what you do best – selling your product.
Speed: We understand time is of the essence, so we work to set up your facility swiftly, usually within a couple of weeks.
Security: Our advance is against your invoices. This means that even if you encounter financial difficulties, the outstanding amount is secured.
Flexibility: As you raise more invoices, you can access more funding. This creates a flexible financing option that grows in tandem with your business.
Comparing Invoice Financing and Factoring
Pinnacle Business Finance offers two primary types of services: Factoring and Invoice Discounting. Factoring involves us managing your credit control, making chase calls, and sending reminder letters. This service can ease the burden of administration.
Invoice Discounting, on the other hand, boosts your cash flow while you manage credit control. It’s an excellent option for large and medium-sized businesses seeking to increase their working capital.
Let’s Navigate this Together
Invoice Financing could be the financial lifeline your business needs, and we’re committed to helping you achieve that with 3 simple steps.
Step 1 – Book an introduction. Let’s have an informal discussion about your business and explore finance options that can help safeguard you against late payments.
Step 2 – Complete a few simple online forms and we’ll match you with the best lenders in the UK suitable for your business.
Step 3 – Expect the funds in your business account typically within 24 hours, complete with insurance against non-payment.
Late or slow payments will be a thing of the past. Our invoice finance facility includes protection against bad debts, enabling you to conduct business with confidence.
Don’t suffer in silence! To find out more contact us today here.
***Update – we are now running our own survey on this issue. It takes under 2 minutes and you can complete it here.