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New year, same old SME finance problem?

New research shows that late payment continues to block SME sector growth. How are small business owners coping? More and more are using invoice finance to survive.

That late payment continues to blight the SME sector casts a huge shadow over public and private sector efforts to remedy the situation. For all the importance bestowed upon the role of small businesses in the UK, that late payment remains a major barrier to development raises serious doubt about commitment to the issue and the sector.

According to new data from Amicus, over 60% of invoices issues by SMEs are not settled within the specified payment period. If this figure wasn’t worrisome enough, the study also shows that 70% of businesses rely on getting paid within this period. It is clear why so many small companies continue to find maintaining cash flow such a challenge.

Not a month goes by without a mention of the issue in the business pages or on business blogs, but the pace of progress towards addressing the problem continues to be glacial. There are plenty of pronouncements and rallying calls, but precious little action. That’s why more and more small business owners are turning to invoice finance – this non-bank finance offers them protection against the potentially crippling impact of late payment. It enables SMEs to take unpaid invoices and turning them into vital capital.

With no proper solution to late payment seemingly in sight and with an uncertain economic outlook, invoice finance and non-bank finance in general has an increasingly important role to playing in supporting SMEs and helping the sector to produce the growth that the country so clearly needs.

To find out more about A&T Business Associates services, contact us on 01903 602211 or info@atbusinessassociates.co.uk.

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