It is often not surprising that some businesses are creating excuses for why they are not chasing an invoice or outstanding payment, before they even hear the client’s excuses for not paying on time. Are they excuses or are there sincere barriers to payment holding up those SMEs in desperate need of cash flow?
What are the most common reasons preventing SMEs chasing payments?
1. Protecting client relationships
“Let’s give them the benefit of the doubt.” Where is the line between protecting future business and letting good faith be abused. As long as there is continuing dialogue, it usually becomes clear what the hold-up is.
“They are struggling too.” Although important to understand the situation of your clients / suppliers, this should have been a factor in securing or offering your service in the first place. Will it come down to us vs. them?
2. Time and Staff Resource
“I have asked them once; I need to move onto the other invoices.” Whether there is no automation or simply not the resource to cover the amount of communication needed, time is often the main factor when it comes to keeping on top of invoice payments.
3. No record of invoice status
If there is no singular resource or system managing the invoice tracking, it can be hard to keen on top of the status of every invoice issued and where they are in the payment process. Automation technology is available to help manage invoices, but it will always require a resource to manage the technology and the final nudge if reminder are simply not enough.
Not a fan of chasing outstanding invoices or simply have barriers to chasing in the first place - perhaps invoice finance is the solution for you…time to pass the buck?
GRENKE will secure your invoice payment on your behalf, offering a personal and efficient service with automated reminders and friendly conversations to bring your invoice into a paid status.
Your GRENKE Portal offer full visibility of your invoices and status, with your personal account managers offering you a one point of contact service.
Every barrier to payment… hurdled.
For more information on invoice finance and how it can change your cash flow outlook and business success, visit Cash Flow For Companies.
Cash flow solutions like invoice finance or factoring can aide your own business, but releasing cash trapped in your own unpaid invoices within 24 hours of financing your invoice. Break the cycle of cash flow restrictions.
GRENKE Invoice finance have been supporting SMEs in the UK for 15 years and continue to offer clients access to flexible products, fast processing and peace of mind.