Posts Tagged ‘cashflow problems’

Late Payment on the Rise

Posted on: December 22nd, 2017 by blsuser1 No Comments Tags: , , , ,
Posted in Business Finance News

The culture of late payment to UK SMEs is a regular topic in our weekly Business Finance Bulletin and the reason for this is that delayed payment hurts many businesses by undermining their growth and the value they bring to the UK economy.

A new survey from business finance company MarketInvoice reveals that 62% of invoices issued by UK SMEs in 2017 (worth over £21b) were paid late, up from 60% in 2016.

The survey found that the average value of these invoices was £51,826. A third of invoices paid late took longer than two weeks from the agreed date to settle – some of which took almost 6 months to be paid.
Sectors

Sectors that frequently pay late included the food & beverage industry (83%), energy businesses (80%) and wholesalers (79%). Meanwhile, those who took the longest to pay included transport businesses (25 days), utilities
(23 days) and those in media sector (21 days).

Regions

In terms of regional experiences, businesses in Northern Ireland were found to be the worst late payers with 93% of invoices paid late. East Anglia (68%) and East Midlands (66%) came in second and third respectively. Scotland was the best of the worst, where half (53%) of invoices were settled late.

Countries

The Marketinvoice research also examined invoices sent to 93 countries. German companies were the worst late payers, taking an extra 28 days to settle invoices from agreed terms. French firms took a further 26 days and businesses in the USA 20 days.

While UK companies (66%) often pay invoices late, those in the USA (71%) and continental Europe (73%) are even more likely to delay payment. However, the UK still takes twice as long (18 days) to pay UK suppliers than counterparts in Europe (9 days).

To lessen the impact of late payment Marketinvoice suggests,

– making T&C’s clear from the outset
– chasing payments
– and enforcing the right to claim compensation from late payments

The Duty to Report measures, which requires large businesses to report on invoice payments twice yearly, that came in to force earlier this year will help but how effective it will be remains to be seen.

Government Launches Small Business Commissioner to Help Resolve Payment Disputes

Posted on: December 20th, 2017 by blsuser1 No Comments Tags: , , , , , ,
Posted in Business Finance News

If you are one of the estimated 20% of small businesses which have run in to cash flow problems due to late payments, then help may finally be at hand.

The government has finally launched the complaint handling service of the Small Business Commissioner to ensure fair payment practices for small businesses. This follows the appointment of Paul Uppal to the role of Small Business Commissioner in October 2017.

The Commissioner’s website has also gone live, providing guidance on payment issues including how to take action if a payment is overdue.

Margot James, Small Business Minister, says that £14 billion is owed to UK small businesses and estimates that taking action on late payment could potentially deliver a £2.5 billion annual boost to the economy.

The Small Business Commissioner’s website provides guidance on how to ‘check, chase, and choose’ in respect of dealing with unfair and late payments, that is:

– check if the right information has been provided to the right people in order for an invoice to be paid
– chase effectively when a payment is overdue
– choose how to take further action, including the option of submitting a complaint to the Small Business Commissioner

You can visit the Small Business Commissioner website here.

Late Payment, Small Business Borrowing and Watching Your Credit File – BFB Epsd 181

Posted on: September 8th, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Late payment is a continual challenge for small businesses and a recent survey carried out by Zurich lays the blame at the door of the larger businesses. We share the findings of this latest research and what you can do to combat suffering from late payers.

With many people being uncertain about the current performance of the UK economy, one measure of confidence is the amount businesses are borrowing from the banks. I lift the lid on the latest Bank of England bank borrowing figures to see what businesses are up to.

To close this Bulletin, we share some recent experiences which highlight why you need to keep a close eye on your credit file. Lenders place a lot of emphasis on a clean report so it pays to keep your file in order.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

British Business Bank SME Support, Funding Circle & Just Eat, and FSB Late Payment Help – BFB Epsd 178

Posted on: July 22nd, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

The British Business Bank, which was established to improve small business access to finance, has issued its latest Annual Report. In our latest Bulletin, we take a look at the progress the Bank has made over the last 12 months.

Alternative lenders are being increasingly quirky in how they tap into new markets to offer finance. We look at the news of a link-up between Funding Circle and takeaway app Just Eat which aims to boost takeaway owner’s access to finance.

The Federation of Small Businesses has always championed ways of tackling late payment and so it comes as no surprise that it has launched a service to help small businesses get paid on overdue invoices.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Perils of Overtrading, Business Borrowing Appetite & NatWest Card App – BFB Epsd 172

Posted on: June 10th, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Whilst increasing sales is always a key focus for ambitious businesses, as we recently highlighted to a growth-hungry business, the danger of overtrading can cause chaos. What is overtrading and how can you avoid falling into the trap of running out of cash?

Despite small business owners remaining confident about their prospects, one message coming out is that many small businesses are reluctant to borrow. We look at the latest findings from the SME Finance Monitor team which reveals that SMEs are cautious about taking on new debt.

Managing administration and finance tasks is often a burden for time-poor business owners. NatWest have recognised this and we look at the announcement of the launch of a pilot app designed to improve the way businesses can monitor and track use of their commercial credit card.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Capital Connections & Seedrs, Late Payment Stress and Bank Lending Appetite – BFB Epsd 171

Posted on: June 2nd, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Despite the introduction of the Bank Referral Scheme, Nat West continues to develop its own panel of alternative finance partners via Capital Connections. In this Bulletin we look at the latest addition to the panel, equity crowdfunding platform, Seedrs.

As well as causing business finance distress, late payment can also cause personal stress for business owners. The extent of the problem is revealed in a recent survey carried out by The Prompt Payment Directory and we review the key findings.

Why would your bank say ‘no’ to a new loan when your business is profitable and your bank account operates with no problems? We close the Bulletin by sharing one reason why this would happen.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

A Short Term Business Loan Can Ease a Cashflow Problem

Posted on: May 15th, 2017 by blsuser1 No Comments Tags: , , , , , , ,
Posted in Business Finance Tips

For more information on short term business loans and whether it can work for you, simply contact us for a no-obligation chat.

New Company Formations, Metro Bank and Short Term Business Loans- BFB Epsd 152

Posted on: January 20th, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

According to the Centre for Entrepreneurs new company formations are at an all-time high. In this episode of the Business Finance Bulletin we look at the numbers and where the entrepreneurial hotspots are.

Metro Bank, one of the so-called challenger banks, has committed to helping more small businesses in 2017 with funds to support growth. How could they help you?

Cashflow problems can hit a business at any time but quarter end and quiet seasonal periods can be particularly tough. We take a look at how short term loans can provide much needed cashflow relief.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Cashflow Problems? A Short Term Business Loan May be the Answer

Posted on: January 17th, 2017 by blsuser1 No Comments Tags: , , , , , ,
Posted in Business Finance Tips

For many businesses, certain times of the year can be a struggle when it comes to juggling cashflow; you may be a seasonal business, you have a growing list of overdue invoices and to cap it all you may be faced with your quarterly VAT bill or personal and business tax.

What can you do?

Whilst chasing overdue payments is a given it’s easier said than when your customers may be facing exactly the same cashflow crunch that you are.

One little know option is to look at a short term loan.

Short term loans are ideal way of quickly replenishing cash to cover outstanding creditors, Corporation Tax, VAT, PAYE or NI arrears. They can also be used to supplement your working capital requirement to allow you to purchase stock upfront with cash, thereby potentially allowing you to negotiate better terms.

Short term loans can be granted very quickly with a minimal amount of information. Decisions are based on the quality of your credit file, the operation of your bank account and past financial performance.

If your application is approved then funds can typically be released within 24 hours, sometimes the same day. Short term loans are for periods from one month upwards with flexible repayment terms and can either be repaid daily or monthly.

The speed of decision and access to funds does come at a cost in terms of a higher interest rate and fees than you may be used to but these can be offset against the speed of decision and swift access to the funds.
If you’re in need of cash boost and want to know more then get in touch and we can chat through your options.

Asset Finance & Bank Lending, Business Confidence and Late Payment – BFB Epsd 149

Posted on: December 16th, 2016 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In this Bulletin, we kick off with our monthly round-up of how lenders are supporting businesses in terms of accessing finance. We look at the latest figures from the Asset Based Finance Association which reveal record business being written by the asset finance sector and levels of support given by the traditional High Street banks.

We review research from Aldermore Bank which shows that business confidence continues to define expectations with SMEs positively looking forward to 2017. How are they planning to expand?

The government is finally beginning to share the rules and regulations they plan to implement in 2017 to curb the late payment epidemic. We look at the steps they will be taking with effect from 1st April 2017 and no doubt large businesses will be concerned about another set of bureaucratic rules to follow!

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

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