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Business experts have highlighted invoice finance as a key refinancing strategy that can help to alleviate struggles within corporate finance. 

The world’s current state of play is proving to be a difficult one for UK businesses. While Britain has now put lockdowns and social distancing restrictions behind them, their bounce back in a post-pandemic world has not been a road of sunshine and roses. 

An extravagant rise in the cost of living has left people bereft of cash, indirectly affecting many businesses across the high-street and beyond. Hospitality is a sector that has suffered as much as any other, with less revenue coming in from customers and increases in the prices of food, alcohol and premises costs. 

In terms of business owners surveyed by Time Finance:

  • 42% believe it gives them financial freedom
  • 1 in 4 said it gives them more time to plan 
  • 17% believe it give it gives them better customer relationships

Invoice financing is proving to be a very popular form of refinancing because it opens up so many closed doors. It releases up to 90% of the value of unpaid invoices and that additional capital can be used to supplement cashflow or growth. 

A report from UK finance notes that 42,000 businesses have been using invoice financing to help refinance their business. Time Finance believes that this figure will rise in 2022 with many financial middlemen expecting clients to turn to invoice financing within the next six months. 

Invoice Finance opinion

Phil Chesham, the leading voice for invoice finance at Time Finance, said: “As the culture of late payment continues to rise here in the UK, the threat that this poses to businesses also grows. Our recent survey results highlight just how vital invoice finance is to businesses.

“Of the business owners surveyed, 67% reported that an invoice finance facility helps them to pay suppliers, HMRC, employees and other financial commitments on time. 50% told Time Finance that it helps to manage late payments from customers and over one third said it helps them to better combat the current economic challenges such as rising costs and inflation.

“With late payment debt as high as £200,000 for one in five UK SMEs, invoice finance solutions are as vital as ever and with the addition of our credit control service here at Time Finance, we can really take the strain away from chasing payments and protect our clients’ customer relationships.”

Invoice finance discussion

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