10 Reasons to Consider Invoice Finance in 2014
Transcript of 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.
www.platformblack.com
SOURCES:
You need a working capital source to support growth plans
You are turned off by more traditional forms of invoice finance, such as factoring and discounting, and their more restrictive/longer-term agreements
You struggle with late payments from clients
You worry about securing future business
You are an active cashflow forecaster, who likes to plan for every business eventuality in advance
An overdraft may not be the right option for you as a business
You want a flexible, fast source of working capital
You want regular access to short-term cash for long-term stability & growth
You want cash in the bank more quickly to meet essential payments
You have large businesses as clients, have to wait for long periods to receive payment, and are challenged with
covering the cost of high-value goods and services in advance of
receiving payment
yes?
abfa.org.uk • abnamrocomfin.com • accountancylive.co.uk • bankofengland.co.uk • exact.comgrowthbusiness.co.uk • ibtimes.co.uk • ingeniousbritain.biz • santander.co.uksyscap.com • cybusinessonline.co.uk • yourwealth.co.uk
Two thirds of SMEs plan to grow in next
1-2 years
‘Invoice finance' is the most popular business finance search engine term for 2013 - surpassing invoice
discounting and factoring
UK SMEs are collectively owed
23% of SMEs plan to increase sales &
marketing spend in 2014
46% of SMEs have recently suffered at least one cashflow disruption
Total value outstanding in UK SME overdrafts
Invoice trading agreements can be on 30, 60 or 90 day terms
20% of SMEs plan to increase capital
expenditure in 2014
50% of SMEs say financial 'survival' is priority right now
44% of SMEs say large clients are the worst for paying late
22%
£37billion
Only 2% of UK SMEs have cash to invest back into their business
SMEs wait on average 38 days for payment
in late payments
Only 1 in 5 SMEs plans to take on more staff in 2014
31% of SMEs are worried about securing
future business
26% of SMEs say access to capital is a challenge
Invoice Finance via Invoice Trading provides funds within hours of auctions closing
Overdraft facilities to SMEs are down by 22% since 2011
77% of accountants would recommend
Invoice Finance over bank loans
44% of SMEs defer payments due to delayed accounts receivables
12% of businesses who defer payments, do not pay staff wages on time
82% of accountants said the biggest challenge their clients face is cashflow
10 Reasons to Consider Invoice Finance in 2014
1
BUT
SMEs plan to invest an average of 13% of turnover
into growth
yes?
2Invoice Finance
3 yes?
38days £
yes?4
5 yes? 6yes?
26%
46%
7 yes?
30DAY
60DAY
90DAY
8 yes?
77%
22%
9 yes?
50%
44%
12%
82%
yes?
58% of SMEs say they are at the mercy of large clients’
payment terms
£