The latest Small Business Index (SBI) from the Federation of Small Businesses (FSB) found that as many as 440,000 businesses could be forced to close in 2022 due to the current late payment crisis. The FSB is warning that a worsening of the UK’s late payment crisis will cause the business community to further shrink in size if it is not addressed.
The new study of more than 1,200 business owners found that almost one in three (30%) has seen late payment of invoices increase over the last three months. Shockingly, almost one in ten (8%) say late payment is now threatening the viability of their business.
The FSB said more than 400,000 SMEs have shut down since the start of the pandemic for a number of different reasons, and that the future of a similar number is now threatened by the late payment crisis alone.
Ongoing problems and a vicious cycle
Of course, this is a vicious cycle for small businesses across the UK. Late payment problems are causing cash flow emergencies and a knock-on effect is the inability to pay suppliers, therefore putting their business at risk too.
Late payments are tough, and if you add on the time spent chasing payments, the future looks even more worrying for many business owners.
How can Invoice Factoring help?
WeDo Finance offers an easy, friendly, and personal service to provide funding support to start or grow your business.
At WeDo, we work directly with your debtors’ invoices. This factoring arrangement can either be disclosed with the invoice debtor or completely confidential.
With our team handling your credit control, this facility provides you with the cashflow and the time to focus on the growth of your business.
How does invoice finance work?
- We work with you to ensure your client contracts are in order and terms are appropriate
- You supply workers/goods/services to your client as agreed
- ou invoice the client and send a copy to us, and we pay you up to 90% within hours
- We liaise with your client to verify the invoice and terms – and wait 30-90 days for payment
- When your client pays us, we’ll pay you the remaining 10% balance owed, minus a small percentage for our services
If Invoice Finance sounds like something that could help your business to keep trading during this period of uncertainty, let’s have a chat. We can tailor our services and be flexible; growing and changing to meet the needs of your business.