Late payments and non-payments are problems that trouble most SMEs. It has been found that around 50,000 businesses are failing each year due to late payments.
If you are waiting around for overdue funds to come in, your cash flow will suffer, and your company will ultimately suffer. If this becomes a reality for a business owner, they begin to struggle to pay staff wages, invest in growth, and cover their supplier costs.
Invoice insurance explained
Whatever industry you’re in, you put a ton of time and exertion into keeping up your relationships with customers, yet late and non-payment puts a huge strain on your bottom line. Regardless of whether a customer has been dependable previously, the circumstance can suddenly change without any warning.
A customer could struggle with their own income or go into administration, which is especially hazardous if they provide a large section of your income, and you lose a significant client.
In the event that at least one of your invoices are left neglected, invoice insurance will make sure you get your cash regardless. You’ll be covered for invoices and will be paid 90% of the total value instantly, if your customers can’t (until the rest is gathered). You secure one or multiple invoices, the choice is yours to make.
The effect of neglected invoices
Late payment and non-payment leaves SMEs like yours in a tough spot. Your invoices are generally charging for work previously finished, which means you’re now using cash on hand if the customer can’t pay. It’s a major misuse of your time and assets, and harms cash flow.
Bad cash flow can make it harder to get credit, purchase stock and supplies, take care of bills, pay suppliers, compensation, and more.
You can trade with confidence
Certainty is enormously significant for SMEs in light of the fact that it brings security and stability. It assists you with settling on bolder choices, planning your future development, and working freely with the customers you wish to work with.
As per research in the Global Banking and Finance Review, 50% of SMEs accept ‘aged debt’ has prevented them from developing and putting resources into their future.
Without the uneasiness of late and non-payments, your business can be prepared for any eventuality and achieve growth in the way you want it to, as opposed to you feeling restricted.
With invoice insurance, the potential for monetary misfortune is greatly diminished and your cash flow will be more secured. Rather than being one of the 43% of SMEs consistently managing late payments in 2018, you could become one of the 57% that aren’t!
Cut out invoice-related admin activities
If you can stop having to chase up late payments, you and your team of employees will have more opportunity to zero in on the important elements – developing the business, intriguing customers, and staying ahead of your direct competitors within your business sector.
Getting paid on time should be straightforward. Our financial solutions give you the peace of mind needed to take your venture to the next level., so you can concentrate on what is important most – your business’ prosperity.