If your business was offered a 0% interest cash injection of £100,000 how would you react?28th January 2016
Lloyds Bank Commercial Banking recently reported that British SMEs are owed more than £500bn in outstanding invoices, an increase of more than 70% in two years with the likelihood it will get worse in 2016.
Nearly a third of businesses stated late payments were affecting their cashflow with a staggering average outstanding invoice amount of £100,000.
There is no need for this. Good financial controls can reduce debtor days and negate the need to use other facilities such as invoice factoring.
A new client of ours regularly reported 95 debtor days on invoices totalling £100,000. Within 8 months this was reduced to 50 days and after 12 months this was down to 31 days.
The enthusiasm of creating your own business; doing what you love; in your field of expertise; to make a profit can soon disappear when faced with the daily operational tasks outside of your comfort zone.
Don’t let the fear of finances stifle your business. Help is out there. You just need to know where to look.