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SMEs struggling with late payments

Published on 19th January 2017 - Last update on 13th January 2020

Although running a business in an industry you thoroughly enjoy can be highly rewarding, it can also be extremely challenging. You have to keep a close eye on every aspect of your business as should anything skip your attention, the ramifications can be costly. This is especially true when handling your business’s finances, and late payments can be a big issue for SMEs.

Needing access to finance

Ensuring your business has access to ample amounts of funding is vital for stimulating growth and sustainability. However, once you’ve acquired a finance package for your business, you need to incorporate the repayment scheme with your monthly routine. But sometimes, an unexpected event could hamper your business and leave you unable to make payments. As you can imagine, this leaves your business in a truly precarious position.

If you find yourself in a position where you are unable to make a payment, there are options still available to you. Access to quick cash can often provide a vital lifeline for your business and is definitely worthy of consideration. There are a number of finance packages that can grant you access to quick cash including Invoice Finance, Merchant Cash Advance and Refinancing.

  • Invoice Finance: If you’ve performed a service or sent a product to a client, your business is out of pocket until they pay up. Waiting lengthy periods of time can prove damaging to your business’s growth and sustainability. Invoice finance unlocks the cash sealed away in your unpaid invoices, giving you peace of mind. Offering your business a loan equal to 90% of a single invoice’s total worth, this means of finance can help carry your business until you hit a period of high sales.
  • Merchant Cash Advance: To be able to use this method of finance, be sure to equip your business with a Chip ‘n’ Pin device or any other type of card payment technology. When applying, lenders will request to see your latest business reports outlining all card transactions for 2 consecutive months, or possibly longer. This is necessary for demonstrating the reliability of your clientele’s card spending behaviour. MCA loans start from £5,000 up to as much as £100,000.
  • Refinancing: By using this form of finance you can take all of your existing debts and merge them into a single loan product. As such, your business will regain the ability to better manage its working capital and it will alleviate the burdens on your cash flow. Remember though, you are looking to either acquire a reduced interest rate or secure a smaller monthly repayment.

Our values are simple – We’re on your side

At Rangewell, we support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.

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