Over 54,000 business go into liquidation or cease trading each year due to extending their credit lines beyond their financial capacity causing huge pressure on the long-term viability of their business.
Most SME’s in the UK have around a 3-6 month cash burn rate meaning that if more money is going out of the business than coming in, then a business wouldn’t be able to sustain itself longer than 6 months. Having invoices which are long overdue only adds to this pressure and can cause major cash flow issues meaning otherwise engaged capital has to be unnecessarily spent which you wait on invoices to be settled.
Having overdue invoices which are over 30 days late is a huge liability if your business already has poor liquidity. There could be a risk to your business remaining solvent in the long term and it can soon spiral out of control. We can help recover delinquent invoices from poorly paying business customers to get your business back into a healthy cash flow position.