Many Small and Mid-Corporates across the globe continue to struggle with late payments for invoices that are due in 30 days. Unfortunately, the problem is even bigger for many companies where the terms of payments stretch for up to three months.
The ‘knock-on’ effect of long payment terms can be catastrophic for businesses even when there is no delay in settlement – particularly fast-growing firms.
A company risks failure because they are scaling quickly and can’t get the working capital they need to pay for the things that will catapult them to the next stage of success. This includes anything from renting bigger warehouses to store an increased demand in goods, to hiring new employees and paying utility bills.
Figures from the UK Office for National Statistics, reveal that 40% (2m) of the UK’s growing businesses have less than three months’ worth of working capital left to support their day-to-day operations. About 10% (200k) of those 2m – are in “serious trouble”, and another 300,000 “have only got weeks left”.
Companies are also crippled by astronomical costs, with factory input prices increasing by 18.6% in 2022. A record high. Many businesses are increasing their prices to mitigate the hit, but this creates inflationary pressures across many industries. Sadly, this is a problem that transcends the globe. SMEs (Small and Mid-size Enterprise) around the world are struggling.
SMEs can spend weeks chasing late invoices and endless hours anxiously waiting out their 90-day terms of payment. This isn’t a constructive use of time – and constant worrying won’t solve the liquidity crunch.
So, what can companies do to avoid late and longer-term payment terms to prevent financial defeat and grow their business?
If you are Small or Mid-sized entity experiencing working capital issues due to long payment terms, we can help. Here at Accelerated Payments, we make it easy to get invoices paid faster.
Our solution keeps you in control. You select the invoices that need acceleration, and we’ll do the rest. No fuss. No complicated fees. No security required.
Whether trading domestically or internationally, get in touch today.