Small businesses across the UK are failing to collect billions of pounds of revenue due to forgotten invoices, according to the latest survey by business and finance software provider Exact.
One in five SMEs surveyed said they had forgotten to invoice a debtor for goods or services on at least one occasion. Of these, 12% said that the job was worth between £5,000 and £10,000, whilst 6% stated the forgotten invoice was to the tune of more than £10,000.
With SMEs in the UK accounting for 99.9% of private sector firms, 4.8 million SMEs are out of pocket by almost £4bn according to the survey.
Hartmut Wagner, managing director of Exact, said: “We don’t want to blow this issue out of proportion but these findings do highlight that many SMEs who are eager to grow are not doing themselves any favours, particularly with so many of them expressing concern over their cashflow.”
The study went on to reveal that one quarter of business owners have concerns regarding their accounts and business finances with 45% indicating they have had to defer payments as a result of cashflow problems; 12% even said they had failed to pay wages on time because of such issues.
Credit Control Management with Skipton Business Finance
Businesses that issue invoices can help eliminate issues with poor invoicing procedures through the use of invoice finance facilities, such as invoice factoring.
Invoice factoring works by providing funds upfront for unpaid invoices often within 24 hours, which can be up to 90% of their total value.
It also provides the business with its own specialist credit control function, with our team essentially acting on your behalf to invoice your debtors and collect payments as quickly as possible, ensuring you don’t miss out on collecting the funds you are rightfully due.
Why not view our simple infographic guide to invoice factoring, fill in the enquiry form on the right hand side or give us a call on 0845 602 9354 for a chat with one of our invoice finance specialists.