New research has shown that British SMEs own a staggering £770 billion in assets and are owed £291 billion in outstanding invoices that they could use to fund future growth.
Even though businesses are becoming more and more confident about investing in future growth, with many aware of invoice financing as a possible form of lending, very few have utilised it to drive growth over the past twelve months. Invoice finance can help businesses release cash quickly, giving them access to up to 90 percent of the value of their issued invoices.
“There is little doubt that many small businesses are missing out on the opportunity to recruit new staff, break into new markets or develop new products because they are not harnessing the full range of funding options available that could well unlock the value in their assets or invoices to aid growth.” Said Gerald Irwin of Sutton Coldfield-based Insolvency Practitioners and Business Advisers, Irwin Insolvency.
The average small business is owed around £60,000 in unpaid invoices and whilst being aware of the different finance options available appear not to understand enough about them to take full advantage.