As reported last week by City A.M., London’s financial and business paper, SMEs are concerned about funding and how they will access funding in the future. Their main concern is the ongoing struggle with late payments and the direct impact this is having on cash flow. A study from MBH Corporation backed this up with 40% of respondents believing that applying for SME funding is going to become more difficult. With so many businesses concerned about their cash flow, we take some time to explore what alternative methods of funding are available.
What Can Be Done About Poor Cash Flow?
If a business is in need of a cash injection and considering funding then it could consider other alternative methods of funding before committing to a business loan and associated interest charges etc.
What Is Invoice Factoring?
Invoice factoring allows business to release funds tied up in the sales ledger almost as soon as an invoice is raised and waiting to be paid by clients. A small percentage is taken from the total amount by the funder as a service charge but it allows businesses to access funds much quicker. The lender will then collect the final payment from your customer at the end of your payment terms.
What Is the Difference Between that and Invoice Discounting?
Invoice discounting works almost the same way as invoice factoring, you collect monies from a lender as you invoice clients, but it is up to your business to collect the payment from your client by the due date. This means that your credit control processes stay in-house and your clients are unaware that you are receiving funding.
How Can My Debt Recovery Help?
My Debt Recovery is part of a group of companies, the My Invoice Group. My Invoice Finance is able to provide both of the above services and more, to help SMEs unlock their invoices and bolster their cash flow. You can reach the My Invoice finance team here.
Invoice Finance is available for any new and current invoices and can give immediate and regular cash injections into a business but what about historical invoices that have not yet been settled and are now overdue?
Commercial Debt Recovery
If you have a big hole in your finance as a result of late or unpaid invoices then your business could drastically improve its financial position with a big push on its debt recovery. The money owed to your business belongs to your business and so that’s where it should be, not stuck with your clients. But, debt recovery is a time-consuming process, particularly for small businesses and one-man bands. Chasing payments takes time and energy, which could be utilised elsewhere if you were to outsource your commercial debt collection.
We are able to work with our clients on a no collection, no fee basis and utilise all of the specialist tools at our disposal as commercial debt collection experts. We do our utmost to preserve the relationship that you have with your customers and approach them with a level of understanding and expert handling. We are able to recover monies owed to your business and enable you to unlock capital that can be spent on growing your business, overheads and other business costs.
If you’d like to have an open and honest discussion about your debts, work with us to determine the best course of action and, ultimately, recover what is owed to your business in an efficient and streamlined manner then reach out to our team today. We’re ready to help you and countless other SMEs who are struggling to recover their commercial debts and need a helping hand. Contact us.