Bibby Financial Services recently released the results of a study of 1,000 small and medium sized businesses. The study highlighted a lack of awareness around working capital that the businesses are owed.
More than a third of small and medium-sized businesses aren’t aware of how much money they’re owed in unpaid invoices. 36 per cent of SMEs were unable to pin down how much money they had wrapped up in invoices left outstanding. Of businesses that did have these figures, 31 per cent were owed more than £50,000, six per cent were owed more than £100,000. The average amount owed across all clients in the survey was £47,657.
In the hospitality sector the issue appeared very serious with 67 per cent of businesses unsure how much was owed to them. Transport and distribution firms also had problems with knowing how much money was in the payment pipeline, 39 per cent of these companies admitted not knowing how much they were owed.
As the UKs leading invoice discount provider Bibby Financial Services has direct experience of how money locked up in outstanding invoices stunts business growth.
Unpaid invoices can damage a business and limit growth, a service like Factoring can mean that you release finance locked up in unpaid invoices and allow business expansion and reduce pressure on cashflow.
We’ve blogged before about Factoring, and how it can help businesses. We also offer other services including confidential factoring services that can be of real benefit to businesses with large amounts of money outstanding.
At a time when cashflow is an important issue for many businesses and increasing completion is a big threat to established companies. It makes sense to make the best use of any outstanding invoices.
Here at Bibby Financial Services we’re happy to advise companies on the best route to take when they have large amounts of money tied up in outstanding invoices. We can advise on how to best collect these funds, and how the funds can be put to use even while they’re still outstanding.
Bibby Financial Services
As the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding to over 7,000 businesses, Bibby Financial Services provides a range of finance solutions for businesses in over 300 industry sectors.
For more information about Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.