Blog

An alternative way of overcoming late payment

24/01/2017 / Comments 0

An alternative way of overcoming late payment

When cash flow is suffering at the hands of late payment, most businesses rightly focus their efforts on improving their credit management to reduce the length of time between providing a service and getting paid for it. But could there be another option?

While improved credit control can provide many benefits to businesses experiencing late payment, securing targeted and specialist finance can also be beneficial to help bridge the cash flow gap that arises from trading on credit.

The delays associated with trading on credit terms mean that businesses often find their working capital stretched to the limit with suppliers, bills and wages to pay before customers settle their invoices.

But, instead of waiting weeks for customer payment, funding solutions such as invoice finance allow businesses to quickly access the capital tied up in its sales ledger.

Invoice finance releases up to 90% of an invoice’s value within 24 hours, allowing businesses to free up the cash that’s essential to fulfilling new orders, meeting day-to-day commitments and securing early settlement discounts with suppliers. And when the customer pays, the remaining balance of the invoice is made available minus a service fee.

According to the Asset Based Finance Association (ABFA), the third quarter of 2016 was the biggest ever for asset based finance, with a record £20.7bn advanced to businesses – up by 4% year-on-year.

How can invoice finance benefit your business?

The two main forms of invoice finance are factoring and invoice discounting. Whilst factoring can additionally provide credit management support, invoice discounting lets you retain control of your sales ledger, solely providing the working capital that would otherwise be tied up as an asset on the balance sheet. Either solution will ultimately allow you to focus on growing your business.

If you would like to find out more about how invoice finance can benefit your business, click here to download our ultimate guide.

As an independent commercial finance broker, we could help your business secure the most suitable funding solution for your needs. For more information about how we could help please contact our team on 0800 9774833 or email info@hiltonbaird.co.uk.

Comments

No comments yet - be the first!

Some of the funders we work with

  • Shawbrook Business Credit
  • Pulse Cashflow Finance
  • Catalyst Finance
  • Innovation Finance
  • Barclays
  • iwoca
  • Positive Cashflow Finance
  • Spotcap
  • 1pm
  • Regency Factors
  • Aldermore Invoice Finance
  • Lloyds Bank Commercial Finance
  • Trade Finance Partners
  • Nucleus Commercial Finance
  • ABN AMRO Commercial Finance
  • Assetz Capital
  • Skipton Business Finance
  • Calverton Finance
  • Henry Howard Cashflow Finance
  • Outsauce
  • Ultimate Finance Group
  • Bibby Financial Services
  • Santander Corporate & Commercial
  • Roma Finance
  • Leumi ABL
  • Everline
  • Metro Bank SME Finance
  • Davenham Asset Finance
  • Davenham Trade Finance
  • Asset Advantage
  • InvoCap
  • Secure Trust Bank
  • Partnership Invoice Finance
  • Working Capital Partners
  • GapCap Cashflow Finance
  • Creative Capital
  • IGF Invoice Finance
  • Royal Bank of Scotland
  • PNC Business Credit
  • Investec
  • Close Brothers Invoice Finance
  • Woodsford Tradebridge
  • Team Factors
  • Platform Black
  • Market Invoice

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders

Our website uses cookies. For more information about managing cookies, visit our Privacy and Cookie Policy. Continue