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Running a successful business is a challenge in itself, but late-paying customers can add significant pressure, especially to smaller companies. The infographic looks at the cost late payments have on SMEs in the UK.
According to recent stats published in 2019, businesses were owed £23.4 billion in late payments, a significant rise of £13 billion from the previous year. A whopping 54% of businesses have experienced overdue payments at some point.
Chasing payments is costly for businesses. As time and resource are used, the cost of this will need to come out of the businesses pocket. In fact, £4.4 billion a year is spent by businesses collecting money that they are owed. This can put an extra cash-flow strain on the company.
Figures suggest that the average late payment debt burden is £25,000 per company. Wholesale trade, administration and support, transport, postal and warehouse sectors are the top 3 most affected by late payments.
The bottom line is the impact of late payments is dramatic and has a damaging domino-style effect across the business from failure to pay day-to-day bills to paying staff wages on time. Some businesses can not sustain ongoing late payments, and this results in over 50,000 company closures each year.
Has your business been affected by late payments?
Created by Sme Invoice Finance
There are lots of different ways to raise capital for your business, but choosing whether to go unsecured or secured with your funding option can be a difficult decision.
Read on to find out everything you need to know, about the differences between these two options.
Secured Business Loans
A secured business loan is basically a loan that is protected by an asset such as equipment, machinery or real estate.
Businesses may choose this option if they want to borrow a large amount, or want lower interest rates that is spread over a longer term.
Advantages of a secured business loan:
• Larger loan amounts
• Lower interest rates
• Pay back your loan over a longer period
Disadvantages of a secured business loan
• Loan amount will depend on the value of your asset
• Assets may be seized if you can’t make payments
Unsecured Business Loans
An unsecured business loan is a loan that is not protected by any asset.
Businesses may choose this option if they do not have collateral to secure against. However, this type of lending does cost more to the borrower as it presents more risk for the lender.
Advantages of an unsecured business loan:
• Faster to obtain
• No asset security required
Disadvantages of an unsecured business loan
• Lower loan amounts
• Higher interest rates
Essentially, what it comes down to is your business needs and the position you're in at the time of applying. Look for a loan that will not only massively help you and your business but one that you know you can afford to pay back.
Created by Capalona
According to the recent asset-based finance statistics published by UK Finance, the sector saw a 38% growth in businesses using invoice finance to fund export activity specifically.
The second quarter of 2017 revealed that the total sales by businesses funding their export activity using invoice finance stood at £7.7 billion, compared to £5.6 billion in the same quarter last year. That’s a significant increase of 36%.
The amount of funding advanced to UK businesses reported a growth to a value of £21.8 billion, up 13% compared to the same period in 2016.
46% of businesses, that’s a total of 19,136 who use asset-based finance such as invoice finance had an annual turnover of less than £1 million.
The use of invoice finance as a funding solution for businesses positively helps overcome some of the complexities of trading goods or services internationally. We hope to see this flexible facility helping more businesses in the future.
Created by Capalona
You’ve been in business for the last two or three years and have navigated the pitfalls, ups and downs associated with the early years of trading. So do you look to keep things the same and carry on nice and safe, or do you look for an ambitious growth strategy to drive your business along?
Nothing stays the same in business. In fact, if you do adopt the attitude of ‘business as usual’ you may find that your competitors creep up on you and start biting your ankles.
Drive your business forward in 2018. Read more >
Could we be finally saying goodbye to cash altogether? Card payments have finally overtaken cash for the first time in what could be the beginning of the end for notes and coin transactions.
Created by Merchant Loan Advance. Source of report from The British Retail Consortium.
Card payments have finally overtaken cash for the first time. Read more >
The latest SME confidence report highlighted the fall in overall confidence amongst businesses in the UK at the end of 2016. Factors such as increased competition, late payments, lack of demand, rising costs and the uncertainty of leaving the European Union was largely to blame.
Created by SME Invoice Finance. Source of report from Bibby Financial Services.
UK SME Confidence Tracker Q4 2016. Read more >
Is your business thinking of going live on Facebook? Live video content is being given priority in the news feeds so it’s in your interests to be part of it. In fact just to throw some current stats your way Facebook video is currently being viewed over four billion times per day so it kind of makes sense to be part of it right?
Get The Best From Facebook Live For Your Small Business. Read more >
We take a look at recent contactless card spending statistics recently released by the UK Cards Association.
The total contactless transactions for the whole of 2015 hit 1.05 billion with a total spend value of £7.75 billion. That's pretty impressive for this new technology but it only accounted for 7% of card spending in that year. Compare that to the first 6 months of 2016, and the figures have already surpassed last year as contactless spending hit a mighty 18%. Contactless transactions from January to June this year have reached 1.1 billion with a total spend of £9.27 billion.
Original Post: Infographic: Contactless Card Technology Grows In Use
Business energy is vital for thousands of businesses across the UK, without it most businesses simply can't operate. At Capalona, we've put together an infographic using data collected from a recent survey.
Business Energy Statistics. Read more >
Social media is now the biggest advertising platform in the world. Businesses are now able to reach more people than ever before, and they can do it in a matter of seconds. With the likes of Facebook, Twitter and Instagram being a part of most people’s daily lives, we’re now more connected than ever.
Facebook is still by far the most used social media website, with an astonishing 1.65 billion active users. Twitter comes in second with a not too shabby 310 million. Every customer any SME could ever want is out there, but how do the most successful engage with them?
We take a look into how successful SMEs engage on social media. How do they use it to their advantage? How do they maximize their reach across each platform?
How do successful SMEs engage on social media? Read more >
After attending a business meeting with a local independent hotel, we found a great marketing opportunity that was sitting right under their nose.
Are you missing customers right under your nose? Read more >