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Late payment to small businesses

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More than three-quarters of small businesses in the UK have been affected by long payment terms or “late payments” of commercial debts in 2010-2011.

On average remittance terms have revealed that the length of time they wait is on average 39 days beyond payment terms

4,000 UK businesses failed in 2008 as a direct consequence of late payment. The Department for Business, July 2011

Analysis shows they are being forced to spend an average of half a day every week pursuing payments

Small and medium sized businesses had a total of £35.3 billion worth of debt owed to them, with the majority of the culprits being large corporates. Daily Telegraph

More than half of the firms spending one to six hours per week chasing late payments, tardy clients are exhausting the SMEs’ already-stretched resources

MarketInvoice’s late payments solution

MarketInvoice is very different to the main alternative, which is factoring. Our three main advantages are flexibility, cost and scope. In terms of flexibility, using MarketInvoice you sell the invoices that you want, when you want. Unlike traditional invoice discounting, there is no obligation to discount your entire debtor ledger, and no lengthy lock-in periods.

  • MarketInvoice puts you back in control of your cash flow
  • It is lower cost, because by only selling selected invoices you avoid expensive arrangement fees and monthly service charges

By building up a track record of successful invoice trades in the marketplace you drive down your cost of funding as investor buyers compete more keenly for your business.

  • Click here to see a list of the numerous debtors/corporates/customers that MarketInvoice has helped auction invoices from
  • Click here for MarketInvoice’s 5 tips for avoiding late payment
  • Click here to read our co-founder Anil Stocker’s response to late payments.

Why are late payments an issue for SMEs?

Large corporations, fully aware of the power they wield over their small and medium sized business supply chain, often enforce 90-120 day payment terms. At Marketinvoice, we have trading statistics that show FTSE 250 companies (high street and household names) paying these businesses as late as 30 days after officially signed terms.

  • Small businesses are afraid of chasing payment of commercial debts for fear of damaging their professional relationships with blue-chip debtors are forced to endure the long delays between issuing invoice and payment.
  • Small and medium-sized businesses are trapped in a “double credit crunch”, thanks in large to late payment
  • On one side they are waiting long periods for payment and on the other are also experiencing severe cutbacks in bank overdrafts
  • A lack of overdraft facility leaves small business owners without short-term financing options to counter late payment
  • Businesses now often have to resort to accepting contracts that are inflexible and costly to them

Entrepreneurs are forced to pledge their personal assets as guarantees, turning potential business failures into personal bankruptcies. Those who can’t access finance risk disappearing altogether.

 
 

Debtors that MarketInvoice has helped with

MarketInvoice has helped with numerous debtors/corporates/customers, including:

  • ABSA Bank
  • ADT Fire & Security Plc
  • Air Products PLC
  • Akzo Nobel UK
  • Alexander Mann Solutions
  • Alphabet (GB)
  • Amaze PLC
  • Amazon EU Sarl
  • Amey OWR
  • Arcadia Group
  • ASOS.com
  • AstraZeneca UK
  • BAA Business Support Centre
  • Babcock Dyncorp
  • BAE Systems Global Combat Systems Munitions
  • Bam Ferrovial Kier Joint Venture
  • Barclays Bank (Suisse) SA
  • Barneys Japan Co.
  • Bartle Bogle Hegarty
  • BBC Worldwide
  • Being London
  • Bernard Hodes Group
  • Besso
  • Blake Lapthorne Solicitors
  • British Heart Foundation
  • BSI Group
  • Business Compass
  • Capita Business Services
  • Centrica PLC
  • Chemirol PUH
  • Daffy’s, Inc
  • David Lloyd Leisure
  • Deutsche Bank AG
  • Deutsche Welle
  • Digitas Inc.
  • DSG Retail
  • eBay International AG
  • EFG Private Bank
  • ENEL Green Power SPA
  • Equiduct Systems
  • FC Business Intelligence
  • FirstRand Bank
  • First Rate Exchange Services Holdings
  • Fjord Network
  • Fox International Channels (US), Inc.
  • French Connection
  • Gala Coral Group
  • GAM London
  • Glue Reply
  • Gold Fields Ghana
  • Greater London Enterprise
  • Gutenberg Networks
  • Hardy (Underwriting Agencies)
  • HCL Great Britain
  • Hiscox Underwriting Group Services
  • IgnitionOne Inc
  • IML
  • Incisive Media
  • Infineon Technologies North America Corp.
  • Intel Corporation
  • Iris Worldwide
  • Jardine Lloyd Thompson Group Plc
  • Kinetic Worldwide
  • Kyocera Document Solutions (U.K.)
  • Lbi International NV
  • Legal & General Group Plc
  • Legal Services Commission
  • Leo Burnett USA, Inc.
  • Life Technologies Corporation
  • Lipsy
  • M/A-Com Technology Solutions Holdings
  • Mansell Constuction Services
  • Mapa Spontex UK
  • Marcus Evans Inc.
  • Markitserv
  • Marks and Spencer
  • MB Log
  • McCann Erickson
  • Mediabrands EMEA (Universal MC Cann)
  • Midgard
  • Midwich
  • Ministry of Interior, Kingdom of Saudi Arabia
  • MMS UK Holdings
  • Morgan Stanley & Co. International PLC
  • Movianto UK
  • MSD International GmbH
  • Nestor Healthcare Group
  • NME Media BV
  • Nokia OYJ
  • Ogilvy & Mather Worldwide, Inc.
  • Paperchase
  • Pembroke Managing Agency
  • PepsiCo Inc
  • Phase Eight (Fashions & Designs)
  • PriceWaterhouseCoopers LLP
  • Rautakesko OY
  • Razorfish UK
  • Reed Exhibitions
  • Rexel UK
  • RGA Media Group
  • RS Components BV
  • Ryman
  • SABMiller PLC
  • Sagicor at Lloyd’s
  • Sapient
  • Satellite Television Asian Region
  • Scottish Widows Investment Partnership
  • Serco Group Plc
  • Sony Music Entertainment Asia Inc
  • Space NK
  • Specialist Computer Centres PLC
  • Stone Computers
  • Talksport
  • TalkTalk Telecom Group Plc
  • TBWA Corporate
  • Telecom Italia
  • Temenos UK
  • The Aerospace Corporation
  • The Garden Centre Group
  • The Metropolitan Police Service
  • The Ogilvy Group Inc
  • TravelJigsaw
  • Turner FM
  • Turner International Asia Pacific
  • UKTV Interactive
  • Vinci Construction UK
  • WaverleyTBS
  • WM Morrison Supermarket PLC
  • Wolters Kluwer (UK)
  • Zenith Optimedia Group
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