Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

How late invoice payments affect growing UK businesses

Kriya Team
August 29, 2017
3
min read
Share this:

We look at some of the ways late invoice payments are affecting growing UK businesses, and effective solutions to counter this challenge.

We look at some of the ways late invoice payments are affecting growing UK businesses, and effective solutions to counter this challenge.

Many business owners are all too familiar with the challenges presented by late invoice payments. These can often lead to a number of complications and difficulties within the business itself. In fact, 23% of UK SMEs report that late payments have put their business at risk of closure.

Here are some ways late invoice payments are affecting growing UK businesses, and effective solutions to counter this challenge.

Long Payment Terms

Invoicing customers involves sending an invoice to them for goods/services which have been sold to them. The money which a company is owed is called accounts receivable, and the money the customer owes is called accounts payable.

One of the main challenges with invoicing is the lengthy time it takes for accounts receivable to be paid in full (usually between 30-120 days). When coupled with the possibility of late payments, this can put a stop to business cash flow and lead to a drying up of funding. It can then be difficult for a business to move forward with their growth and development.

Pursuing Late Invoice Payments

UK businesses need to keep track of every invoice they issue, closely monitoring when payment is due. When an invoice payment is late, pursuing it can take up a lot of resources in terms of admin, time and money.

UK businesses which are growing must be as efficient and effective as possible. Their funding must be put to good use (especially those which are bootstrapping) and not used for unnecessary expenses. Many businesses have had to deal with late payments, which ultimately cut into their efficiency and overall profitability.

Cash Flow and Growth

A small business can be both healthy and successful, yet still be incapable of growth due to cash flow issues. With money spent on chasing late payments, cash flow can slow down as a result.

Many UK businesses have reported the various knock-on effects they experience. These include being unable to hire new staff, purchase better equipment and generally reinvest back into the business.

This is why many of them require cash flow solutions to keep operations ticking along on a daily basis. When they start growing, these businesses can then expand and develop their capabilities and operations, taking the necessary steps to becoming larger, more successful enterprises.

How MarketInvoice Can Help

MarketInvoice helps you get an advance against your outstanding customer invoices, quickly and easily. You can get access to funding in days – not weeks or months.

We’ve advanced more than £1 billion to thousands of businesses across the UK. We help entrepreneurs take charge of their cash flow and not let lengthy payment terms get in their way.

Your Kriya Payments story starts here

Please fill out the form and a member of our team will be in touch

Your Kriya Lending story starts here

Please fill out the form and a member of our team will be in touch

Your Kriya story starts here

Please fill out the form and a member of our team will be in touch

Explore related posts

UK Embedded Finance Index 2022

New Research: UK Embedded Finance Index 2022

New Kriya research shows high levels of awareness of Embedded Finance among UK B2B SMEs. But with implementation intent being 3 years on average, this means thousands of UK firms are leaving money on the table.

Kriya Team
2
 min read
Read more
The Mini Budget and what you need to know

The Mini Budget and what you need to know

Chancellor Kwasi Kwarteng has unveiled a mini Budget (fiscal event, if you like) as the UK faces the prospect of a recession. He outlined three key steps: the energy price guarantee, equivalent support for businesses and an energy markets financing scheme delivered by the Bank of England.

Georgiana Campbell
3
 min read
Read more
Kriya Payments
Aug 9, 2022
Buy now pay later in b2b

How does buy now, pay later work in B2B?

Buy now, pay later has exploded in popularity in the B2C sector, but what does BNPL look like in B2B and how can it benefit you as a business?

Gabriela Wasilewska
5
 min read
Read more