The negative effects of late payments are being felt by entrepreneurs and SMEs throughout the UK, with the average delay lasting six weeks.
Businesses are working hard to tackle the problem within their industry and are coming up with their own commendable strategies for enforcing payments. However, waiting for cash over a set period can still cause issues with cash flow, affecting the ability to stay liquid and keep trade moving.
I am confident that flexible funding, such as invoice finance and asset based lending, offers an effective alternative to traditional forms of bank lending. This type of funding is specifically designed to release cash from unpaid invoices, so businesses have a sustainable way to keep cash flow healthy.
Research carried out by the U.K.’s Federation of Small Businesses found the average delay in payments to small businesses and the self-employed is around six weeks