A staggering amount of the UK’s SMEs are under serious threat and must act now, according to a number of the country’s leading financial experts. It has been reported that over 400,000 Small Businesses based in the UK could be forced to close due to the current late payment crisis.
With calls for urgent government intervention, the Federation of Small Businesses has put forward a strategy to improve the way SMEs are paid. So, with this in mind, and before this strategy is put in place, here’s how Cobra Financial Solutions can help.
Small Businesses Have Seen an Increase in Late Payment of Invoices
In a recent survey conducted by the Federation of Small Businesses, experts discovered that 30% of SMEs had seen a huge increase in late payment of invoices over the recent months – and sadly, 8% of those small businesses admitted that the problem is becoming so severe that it is threatening their entire existence.
Late payment of invoices has always been a problem for Small Businesses; we should know – we’ve recovered millions in unpaid invoices on behalf of SMEs. Tragically, at Cobra, we’ve even seen companies not paying their invoices in the hope that they got out of business, just so they can avoid paying a bill. Indeed, it is this aggressive business culture that is seeing many small businesses having to pay their suppliers before they’ve even been paid themselves or, worse, going out of business altogether.
It’s just not right.
Late Payment is Destroying SMEs
In response to the current late payment crisis, Mike Cherry, National Chair of the Federation of Small Businesses, has vowed to do something about this worrying trend. He said: “Late payment was destroying Small Businesses even before the pandemic hit. The pandemic has made matters worse.”
He also went on to say: “In the past, the government has rightly identified greater board accountability as key to spurring change in this area, but delivery has been slow.”
Given that most Small Businesses are expecting their finances to worsen in Q1, 2022 due to rising energy costs, Brexit checks and the continuation in the downturn of the economy, pessimism is especially prevalent. However, Cobra is here to provide you with a solution.
Trust Cobra: The Late Payment Recovery Experts
Small businesses need to understand that they have to be aggressive and proactive when faced with unpaid invoices. Don’t procrastinate. To achieve a positive result, you have to take positive action in the form of instructing a debt recovery agency.
If you’re a Small Business and are facing serious financial concerns due to non payment of invoices, then you should absolutely take immediate action and instruct Cobra Financial Solutions. We can get to work in just 48 hours.
Put it this way, no business has ever lost a client by simply asking them to pay their bills. However, if that ships’ sailed, then instruct a team of experts and let’s get to work.
Don’t Recover a Debt Yourself – Get in Touch Today
Established over a decade ago, our specialist private debt recovery team is vastly experienced when it comes to handling any debts given to us by SMEs.
So, if you need an unpaid invoice recovering, and if you’re an SME, then instruct Cobra on 0151 526 4222.
You can also email admin@cobrafinancial.co.uk
