With the economy beginning to pick there is one barrier to growth that many business owners don’t see until it’s too late and that is lack of cash to fund future growth. Two recent surveys have highlighted the recurring problems UK businesses have when it comes to late payment.

The first survey from Close Brothers reveals that of those businesses experiencing problems due to late payments, 58% said that it impacts on their day-to-day cash flow management with 17% saying it has resulted in them reining in necessary spending. A further 15% say it threatens their ability to trade.

The impact of late payment is not just on poor cashflow but also in terms of the time taken out of the working day to chase up outstanding debts. Close Bros found that 17% of businesses spend more than 10 hours a month chasing late payers.

Despite chasing for payment it can often happen that the debt remains unpaid and findings from Satagom an automated credit control firm have revealed that 40%of firms have written debts off in the past.

As discussed in previous blogs part of the solution the late payment is to ensure there is a system and process in place for chasing bad debts. The Satago survey found that 77% of firms don’t have a person or a procedure in place so making the chasing of late payments even more difficult.

If your growth plans are held back by poor cashflow there are a number of solutions including invoice discounting, factoring, and spot finance which are detailed here – Cashflow Solutions.

Also here is a chat Rob Warlow had with Steve White of Thornbury Collections on steps you can take to avoid late payment.

In the latest episode of the Business Finance Bulletin a look at what business owners who are selling an equity stake want from their new partners. The relationship between banks and business owners has been strained but a new survey from Albion Ventures reveals a surprisingly high number of businesses getting a ‘yes’ from their banks.

On the alternative finance scene Rob looks at the latest government proposals to force banks to refer borrowers who have been declined finance to sources of alternative finance.

Late payment continues to be an issue for businesses and Rob shares the findings of a recent survey which reveals that a large percentage of businesses are missing out on an important piece of the late payment jigsaw puzzle.

And in the Business Finance Tip of the Week a clip from a live seminar in which Rob discusses the history of crowdfunding.

In this week’s Business Finance Bulletin I look at how small businesses continue to suffer from cashflow problems due to late payments. Surveys from the Asset Based Finance Association and BACS reveal the extent to which SMEs are being held back by late payment… find out how.

Poor cashflow has led to businesses falling behind in VAT repayments; with insights from specialist finance lender LDF showing how overdue VAT is on the up, this is one example of the impact of late payment.

In its quest to improve access to advice and finance I have news on the government’s revamp of its Great Business website and of £10m lent by the British Business Bank to Ratesetter for on-lending to individuals.

In the Business Finance Tip of the Week I have a guest tip from Steve White of Thornbury Collection Services on the excuses businesses trot out when they are overdue on payments.

In the latest episode of the Business Finance Bulletin Rob Warlow examines an issue that keeps many small business owners awake at night… late payment and poor cashflow. Rob looks at a recent survey which reveals how painful the task of chasing late payers can be.

One way to solve cashflow problems is to unlock the cash trapped in a business and Rob shares a relatively new financial solution to this problem which is spot financing.

And in the Business Finance Tip of the Week, a clip from a live seminar Rob delivered at a Kevin Green property and wealth creation weekend hosted in Amsterdam. In this clip Rob talks about raising growth capital via selling equity and how it can benefit a business.

In this episode of the Business Finance Bulletin Rob Warlow looks at the booming Asset Finance industry following the latest figures released by the Finance and Leasing Association. Credit Reports are an important part of a bank’s lending assessment process. Rob looks at one bill you should always keep on an eye on – miss this payment and you could dent your credit record.

In the Business Finance Tip of the Week Rob talks with Steve White of Thornbury Collection Services and he shares three quick tips on getting your invoices paid and avoiding late payment and cashflow problems.

Our latest Friday Business Finance Bulletin is out and this week Rob Warlow talks about the start of the new financial regulatory framework with the Financial Conduct Authority going live.

Rob also take a look at the consultation paper released by the government asking whether banks should be forced to refer clients to alternative sources of finance when the bank has said ‘no’.

Whether banks are up for lending to businesses is always the subject of debate and we look at the findings on bank lending appetite.

And in the Tip of the Week Rob share his ideas on what you can do to prepare for your annual bank visit and review meeting. Enjoy!

Posted on 01.02.2014, by Rob Warlow

Our weekly Friday Business Finance Bulletin video is out. This week Rob Warlow looks at a new campaign being run by the banks to get businesses borrowing (yes, you did read that right!); how a UK crowdfunding finance raise for a property developer has broken all records and finally why you should never have to find an excuse to pick up the phone to chase late payers.

Poor cashflow is one of the main reasons why businesses approach banks for finance. Typically they request an overdraft facility in order to bridge the gap between the payments they need to make to creditors and receiving payments from their clients.

But in some cases a cashflow crunch can simply be caused by poor administration.

We have talked previously on this blog about how systems and processes in terms of managing late payments is important and yet a recent survey has thrown up another reason… forgetting to invoice in the first place!

After all, you can’t chase invoices you’ve not issued!

According to a survey carried out by business and finance software provider Exact , out of the 450 SMEs which participated, 20% admitted to forgetting to invoice for services or goods at least once. The study also found that approximately 12% of the invoices were worth between £5,000 and £10,000, while six per cent were for services or goods worth more than £10,000.

So if you are suffering from strained cashflow don’t automatically go running to the bank, check you have invoiced for every order and of course chase those that are overdue.

Posted on 13.11.2013, by Rob Warlow

One of the main reasons why businesses turn to banks for help is to bridge the gap between paying suppliers and receiving payments on invoices they have issued. However, late payment and overdue invoices can often put pressure on businesses when it comes to keeping within agree overdraft limits.

In the latest of its quarterly Late Payment Index surveys Experian, the credit reference agency, highlights the problems of dealing with large businesses when it comes to payment. According to Experian the UK’s largest businesses are paying their overdue bills on average 15 days later than smaller companies.

The latest survey reveals that larger companies (more then 501 employees) pay 35 days beyond agreed terms whereas small companies pay 20 days over terms. The fact that both large and small firms pay over and above terms is bad enough but at least smaller firms (who probably better appreciate the pain of late payment), make more of an effort.

Comparing previous results, the spectre of late payment is again creeping up on businesses. Larger business are now taking on average three days longer to settle invoices compared to the same period last year. Smaller firms are more or less paying up within the same timescale.

So pick wisely as to whom you do business with!

Poor cashflow is one of the main reasons for business failure so it’s up to you to ensure you have a clear credit collection process in place to avoid getting caught in a cash crunch.