Businesses need operating capital, cash flow, and to eradicate late payments

Considerable ambiguity surrounds what the “new normal” may look like as organisations begin to emerge from the COVID-19 crisis. Scenario thinking can equip organisations better predict and adapt to dramatic changes, however, one scenario that may been eliminated for UK SMEs is the thought of chasing late payments, according to Know-it, the cloud-based credit management platform.

Accelerated Payments, an SME funding provider headquartered in Dublin has announced it plans to fund €100m by 2021-end. The invoice financing provider foresees a difficult period for companies in the coming months but expects organisations with access to capital to conquer the challenges ahead and capitalise on new business openings.

Lynne Darcey Quigley, Founder & CEO of Know-it, commented: “Unfortunately, the data highlights an increasing challenge when it comes to late payments. Despite the government outlining a route out of lockdown, many organisations on the receiving end of late payments will struggle to survive after the crisis. As we have seen from the data, businesses are left with little choice but to carry on and work with businesses deemed bad payers, often to their own detriment.”

Lynne concluded: “This funding will generate openings for businesses that may have struggled in the past to obtain more traditional forms of finance. The risk assessment will be focussed on the buyer, instead of the SME.”

This article was first published by International Accounting Bulletin.