Whilst the Global economy is changing, navigating through a pandemic, the scale of the impact is difficult to analyse at this point. Businesses have many challenges to stay in the green and keep operating. There is a heavy reliance on customers, and maintaining the flow of business.
However getting the cash that you are owed isn’t always easy. A report shared by Dun & Bradstreet highlighted that the majority of companies tended to pay between 1-30 days late on agreed terms (48.1%). And those paying between 30-60 days late accounted for 4.4%, and severely delinquent bad payers, at 3.7%.
In times of turbulence, many businesses cannot afford to accommodate late payments, and the time involved with managing the process.
Dun & Bradstreet go on to say;
“Through 2020, businesses will have to carry out thoughtful credit assessments in order to sufficiently help safeguard their cash flow and quickly manage breaches in contract and late payments by customers and suppliers.”
What does this mean for your business? Considering other cash injection methods such as invoice financing is a sure way to maintain capital within your business.
Invoice financing, otherwise known as financial factoring, gives you the time and financial freedom when you need it most. This type of financing option allows you to sell your accounts receivable for immediate cash, getting paid in a matter of 24 hours (rather than waiting far over the agreed terms).
At GRENKE, we take on your collections (factoring receivables) and release your invoice funds directly to you. Our risk free and convenient approach ensures you spend more time focusing on what’s important, the stability of your business. Invoice financing may bridge the cash flow gap in your business.
Find out more about invoice financing here.