As we come closer to the end of the pandemic, many Irish businesses are feeling the effects of the slow down in the economy and the rise in inflation. Couple with high oil prices and low supply of materials across the globe, businesses are facing greater challenges than ever before.
All these external factors contribute to cash flow pressure for many businesses. So when businesses are faced with late payments from clients, it can limit a company’s ability to operate as usual.
Unpaid invoices, especially those that go 30, 60, 90 and even 120 days can impact other areas:
Slow Business growth
Overdue invoices can hinder growth. When a business is unable to re-invest back in, business growth or expansion slows. A business needs to be able to raise funds quickly in order to hire staff, purchase equipment or even supplies. The effect of late payments not only slows productivity, it can impact the bottom line.
Keeping healthy relationships
Successful businesses establish meaningful relationships with key stakeholders especially with their suppliers. Delays in outstanding invoices, can delay payments of supplier invoices, which can impact the supply of goods and services. This further impacts key deliverables to the customer and places a strain on the supplier relationship.
Running a business can be difficult. Most business owners lose sleep due to the stress of not having a positive cash flow. Their stress relates to how they can fulfill orders, pay wages and pay operating costs.
So getting your hands on cash from overdue invoices can help relieve some of the stress. Invoice Finance or Invoice Discounting is a process to fund the business using its accounts receivable ledger as collateral. A business receives capital as a cash asset replacing the value of the accounts receivable on the balance sheet.
Unlike other business finance loans, the process for Invoice finance is simple, and you can get approval within 48 hours.
If you’re looking to reduce your business stress, and have overdue invoices, then contact FIFO Capital for a cash injection into your business.