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.
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.