10 Reasons to Consider Invoice Finance in 2014

10 Reasons to Consider Invoice Finance in 2014 With new data from Santander Corporate & Commercial predicting UK SME aggregated growth rates of 134% in the five years from 2014, businesses are in a stronger position than ever to strengthen their financial position in readiness for the time ahead. From cashflow needs to support forecast fluctuations and late payments, to working capital for marketing, invoice finance can offer an invaluable, fast and flexible financial solution. In this infographic, we look at the reasons behind the SME network's need to arrange cashflow and working capital facilities from beyond the banks - and why invoice finance should be high on the list of business owners' considerations for the New Year and beyond. You need a working capital source to support growth plans You are turned off by more traditional forms of invoice finance, such as yes? factoring and discounting, and their more restrictive/longer-term agreements Only 2% of UK SMES have cash to invest back Q Invoice Finance yes? into their business 'Invoice finance' is the most popular business finance search engine term for 2013 - surpassing invoice discounting and factoring BUT з You struggle with late yes? payments from clients UK SMES are collectively owed £37billion in late payments Two thirds of SMES plan to invest an average SMES plan to 38 SMES wait on average E 38 days for payment grow in next 1-2 years of 13% of turnover days into growth 4 You worry about securing future business 31% of SMES are yes? worried about securing future business Only 1 in 5 SMES plans to take on more staff in 2014 23% of SMES plan to increase sales & marketing spend in 2014 An overdraft may not be the right option for you as You are an active cashflow forecaster, who likes to plan for every business eventuality in advance yes? a business yes? 46% of SMES have recently suffered at least one cashflow disruption Dec 2013 £18.3bn 26% Total value outstanding in UK SME overdrafts Nov 2013 £14.2bn 46% 26% of SMES say access to capital is a challenge Overdraft facilities to SMES 22% are down by 22% since 2011 You want a flexible, You want regular yes? access to short-term cash for long-term stability & growth yes? fast source of working capital Invoice Finance via Invoice 77% of accountants Trading provides funds within hours of auctions closing would recommend 77% Invoice Finance over bank loans 30 20% of SMES plan to increase capital expenditure in 2014 DAY DAY DAY 22% Invoice trading agreements can be on 30, 60 or 90 day terms You want cash in the bank more quickly to meet essential payments 10 You have large businesses as clients, have to wait for long periods to receive yes? payment, and are challenged with covering the cost of high-value goods and yes? 50% 50% of SMES say financial 'survival' is priority right now 44% services in advance of receiving payment 44% of SMES defer payments due to delayed accounts receivables 44% of SMES say large clients are the worst for paying late 12% 12% of businesses who defer payments, do not pay staff wages on time 58% of SMES say they are at the mercy of large clients' payment terms 82% 82% of accountants said the biggest challenge their clients face is cashflow abfa.orguk • abnamrocomfin.com • accountancylive.co.uk • bankofengland.co.uk • exact.com growthbusiness.co.uk • ibtimes.co.uk • ingeniousbritain.biz • santander.co.uk syscap.com • cybusinessonline.co.uk • yourwealth.co.uk SOURCES: Platform Black www.platformblack.com 2.