Invoice Finance: A Lifeline for SMEs

Invoice Finance A lifeline for SMES SMES are the lifeblood of the British economy SMES account for 99.9% of UK businesses and are responsible for 48.8% of Britain's total turnover (£3.1tn) 29.7 people are in work in the MILLION UK in total 23.9 people are employed in MILLION the private sector 14.1 private sector workers are MILLION employed by SMES But retaining cash flow is vital when there are staff and suppliers to pay 46% of UK businesses admit to having experienced some form of cash flow set-back 44% of young SMES have run out of cash or come very close 44% of UK businesses perceive cash flow to be a threat to them over the next 12 months 17% of UK businesses are extremely concerned about the future of their business The smaller the business, the greater the concern 6% Concerned 14% Concerned 22% Concerned £250,000 - £500,000 Businesses £5m - £20m £500,000 – £1m Businesses Businesses And a full order book doesn't always add up to cash in the bank... of businesses report that they have experienced 24% cash flow issues as a direct result of late payment: • 38 days (just under 8 working weeks): average wait for payment • £30.2bn: the national late payment debt • £39,000: amount North-based SMES report they're owed at any given time • £23,000: amount South-based SMES report they're owed at any given time Invoice Finance makes use of the cash you're owed, now... Invoice Finance unlocks the capital tied up in your unpaid invoices giving you fast access to the funds you need to keep cash flow steady and the business running smoothly. Invoice Discounting Factoring Invoice Discounting allows you to borrow money against your incoming invoices, but leaves you to manage your sales ledger for confidentiality. Factoring is a flexible funding and collections service: the bank acts as your credit department and chase payments for you, so you're free to focus on your business. £16bn 83% 43% of invoice finance of all asset-based financing is accounted for by invoice discounting total advances made to businesses in 2012 users are small businesses @aldermorebank www.aldernmore.co.uk SOURCES: http://intuitglobal.intuit.com/delivery/ems/ prod/sites/default/intuit.co.uk-blaze/pdf/ Intuit-Report-The-Three-Year-Glitch.pdf http://www.bacs.co.uk/Bacs/Press/PressReleases/ 2013/Pages/PaymentTermsignoredAsSMEsWait EightWeeksForMoney.aspx http://businessinsight.santandercb.co.uk/ in-the-media?url=/news/cash-flow-concerns- uk-smes-worried-year-ahead&news=360 http://www.abfa.org.uk/public/aboutABFA.asp