Furthermore, the number of small and medium sized businesses reporting that they are experiencing payment delays have risen by over 65% 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.
The data also revealed that small firms are now waiting an average of 41 days beyond agreed payment terms on invoices as big businesses are continuing to monopolise on their dominant market position and delay invoice payment.
that small firms are now waiting an average of 41 days beyond agreed payment terms on invoices
"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 benefited 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," said Edward Rimmer, chief executive of Bibby Financial Services.
"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."
