What happens if your customer demands longer payment terms? - Image

What happens if your customer demands longer payment terms?

Long payment terms are a huge concern to smaller businesses. While you have to pay your suppliers and staff on time, often your larger customers can demand longer payment terms. Depending on your industry that could be 60, 90 or even 120 days. And complaining about it may result in you losing that customer.

This gap between providing services and receiving payment causes significant cash flow difficulties as there is no money to reinvest in the business, or worse, the business can no longer cover the day to day running costs.

What’s the solution on offer?

In spite of Government intervention, small businesses are still being left with a cash flow gap, preventing them from running their business and growing to their full potential.

Whilst words such as “unacceptable”, “exploitation” and “holding small businesses and suppliers at gunpoint” are all impressive claims, the media has also failed to offer solutions to those affected.

Invoice finance works by providing the cash value of an invoice on the day it is raised. This means that if a supplier has 60 or 120 days payment terms, they can continue to offer those payment terms whilst receiving the cash from the invoice within 24 hours after the product or service has been provided.

Every month Touch Financial help businesses improve their cash flow with invoice factoring.
Find out how much extra cash you could raise.

Learn more about how to bridge payment term gaps using Invoice Finance

To learn more about invoice finance, please visit our invoice finance and factoring pages. Alternatively, if you are keen to speak to a consultant for free guidance and to help find the most suitable lender, click on the quote form button.

We don’t just offer invoice finance, however. Our highly trained team of experts can help you find a range of financial products, including secured and unsecured business loans.

Apply now and one of our consultants will help to find you the best invoice finance facility for your business, free of charge.

Monthly Archives

2019
2018
2017
2016
2015

Twitter Feeds

Touch Financial rated 4.9/5 based on 300+ customer reviews. See reviews here »

Subscribe To Our Email Newsletter

More Posts