Small to Medium sized Enterprises need lenders who really understand their business. An invoice financier with a low manager-to-client ratio can truly get to know the SME and make a real difference when times are hard.
Managing cash flow is the key challenge. "Effective credit control can make the difference between survival and collapse. Companies that chase payment of invoices themselves must stay on top of the process to avoid outstanding monies turning into bad debt."
Businesses also need to perform better credit checks on new customers. "Only 27 per cent of SMEs check new customers as standard procedure, our figures show, which means 73 per cent are putting the survival of their businesses at risk at a time when just one unpaid invoice could spell failure. Invoice finance lenders can help by credit checking customers and suppliers as part of a wider factoring service."
Cash is king, and everybody wants to hold onto it. Our research shows that more customers are disputing invoices so they can hold onto the money for longer. You need fantastic administration during this period. You must be good at invoicing, strong on delivery, and swift to tackle late payments.
One of the most common causes of Cash Flow Problems is where your customers are looking for longer credit terms, however, your trade suppliers are looking for faster payments from you. The classic cash flow squeeze, in these circumstances Invoice Factoring and Discounting can be the perfect solution.
To discuss how Invoice Discounting or Factoring could help your business please contact Phillip Evans. Did you also know you can try the product RISK FREE for 3 months.