What can I do about clients that pay late?

What can I do about clients that pay late?

We are witnessing numerous firms struggling with cash flow issues as a result of needing to prolong trade payment terms amid disruptions in global supply chains, economic unpredictability, and rising inflation.

Historically, overdrafts have been the preferred working capital option for businesses. But banks are no longer providing or extending these facilities as often as they did before the 2008 financial crisis.

Lenders are also becoming more hesitant to lend more money. Fortunately, there are additional financial choices, including invoice financing. Most firms can obtain up to 90% of an invoice’s value through invoice financing if the invoice is less than 90 days old.

A firm will almost certainly be able to acquire far more capital through this type of funding than through an overdraft.

In conclusion, invoice financing is a viable substitute for an overdraft facility. Although overdrafts are often approved for a 12-month term, they are theoretically repayable on demand and may be cancelled at any moment (with reasonable notice). 

Invoice finance is often taken out over 12 to 36 months. And offers more comprehensive security and a capacity that may expand with your firm at a predetermined percentage of the total debts to be invoiced.

For more information please email enquiries@apollofinance.biz