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A new study has revealed that small businesses are losing as much as £2 billion a year as a result of clients failing to pay invoices on time, or at all.�
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According to research carried out in June and July, which questioned financial advisors about their perception of the economy and business, found that 57 per cent of advisors are now likely to recommend invoice discounting as a solution to poor cash flow.�
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Using a factoring or invoice discounting firm can help small business owners from having to put their own money into their business while they wait for invoice payments to come through.�
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Excel Technical Consulting, a Cambridge-based recruitment firm, has managed to stay afloat despite problems with cash flow as a result of using factoring and debtor protection.�
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Two former recruitment professionals were found not guilty of conspiring to defraud the Royal Bank of Scotland (RBS) by abusing an invoice discounting facility.�
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Speaking to Malta Business Weekly,FIMBank president, Margrith Lutschg-Emmennegger, says that the use of factoring products and services is growing by 80% in some developing nations.�
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According to a new survey by Lloyds TSB Commercial Finance, some 29% of small and medium sized enterprises (SMEs) were having cash-flow problems during the last six months of 2008. This represents an 8% increase in the number last year and 70% cite late payment of invoices as the main reason for their shortfall.�
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A survey carried out by leading independent factoring firm, Close Invoice Finance, has found that the vast majority of small and medium sized enterprises (SMEs) expects to survive in 2009, despite the recession.�
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The government is said to be in informal discussions with the Asset Based Finance Association over the possibility that it may begin to provide firms with invoice discounting in order to boost cash flow among smaller firms.�
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