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Late payment solution (an alternative way to beat late payment)

24/01/2019

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 late payment solution?

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 first quarter of 2018 saw an increase in asset based finance, with a fantastic £21.6bn 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. If you’re looking for a late payment solution please contact our team on 0800 9774833 or email info@hiltonbaird.co.uk.

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Some of the funders we work with

  • Optimum Finance
  • Shawbrook Business Credit
  • Skipton Business Finance
  • Close Brothers Invoice Finance
  • ABN AMRO Commercial Finance
  • Berkeley Trade Finance Ltd
  • iwoca
  • Investec
  • Partnership Invoice Finance
  • Davenham Asset Finance
  • Asset Advantage
  • Bibby Financial Services
  • Santander Corporate & Commercial
  • Calverton Finance
  • Roma Finance
  • Accelerated Payments
  • Regency Factors
  • Metro Bank SME Finance
  • Merchant Money
  • Leumi ABL
  • Time Finance
  • Sonovate
  • Barclays
  • Pulse Cashflow Finance
  • Nucleus Commercial Finance
  • Trade Finance Partners
  • MarketFinance
  • 4Syte
  • Secure Trust Bank
  • MaxCap
  • Team Factors
  • Aldermore Invoice Finance
  • Creative Capital
  • Lloyds Bank Commercial Finance
  • Haydock Finance Ltd
  • inFund
  • IGF Invoice Finance
  • PNC Business Credit
  • Peak Cashflow
  • Royal Bank of Scotland
  • Ultimate Finance Group
  • Giant
  • Boost Capital
  • Davenham Trade Finance
  • InvoCap
  • Woodsford Tradebridge
  • FIBR Tech Limited

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We are a credit broker and not a lender and offer credit facilities from a panel of lenders

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