Offering credit terms to customers is a solid strategy for building business relationships and increasing sales but with 62% of SMEs reporting that they are struggling with late payments, it’s vital that companies are proactive in making sure that they have a clear understanding of their customer’s ability to pay invoices before setting out terms and conditions.
Alarming statistics show 20% of business owners are not paying themselves amid cash flow concerns, a new report from Hitachi Capital Business Finance revealed.
Good to see that the Government is taking challenges faced by SMEs seriously, and is putting its money where its mouth is by providing £2m to fund projects that are looking for innovative solutions to solve common problems faced by small businesses – with late payment being paramount.
One of the best pieces of client feedback we have received was, “I was sceptical at first – I needn’t have been. My company uses the toolkit everyday and it has helped us avoid some business decisions that would have put us in a vulnerable position. Worth every penny of the £79.95 annual subscription.”
Probably not a question you ask too often in business if things are going smoothly. However, when invoices are unpaid and phone calls unanswered, it’s asking the right questions or digging a little deeper into whom you are working with in those early days that could save you a lot of time, energy and most importantly – cash.
The British Chamber of Commerce reports that the UK economy will remain on a weak trajectory in 2018 due to Brexit uncertainty, high inflation costs and weak productivity. With many SMEs still reeling from the interest rate increase in November 2017, business experts agree that resilience and willingness to adapt will be key for SMEs to stay afloat this year.