... Leaving thousands of SMEs with serious cashflow problems
New research has revealed that HMRC has ramped up its pursuit of unpaid taxes more than ever before – with winding up petitions at a five year high.
Businesses hit with such petitions are often forced into selling off their assets to settle their outstanding tax commitments.
This five year high rise is a whopping 21% higher in 2017, compared to 2016; with small businesses being hit especially hard. In addition, HMRC actually seized assets from 1,953 UK businesses last year – equating to an increase of 23% compared to 2016.
One of the reasons so many businesses are falling foul of their tax obligations is that they are victims of late payments (see our blog ‘supply chain bullying’) which can lead to a complete lack of cashflow.
What doesn’t help, when a business has run out of available cashflow is the way in which HMRC issues and demands payment.
- HMRC’s tax payment is required immediately upon invoice.
- This often means an SME is hit with a tax bill (often which they have struggled to calculate themselves correctly) and they can find themselves with a massive shortfall.
- The biggest reason is that SME businesses do not have the cashflow to fund such tax demands.
Does Your Business Struggle With Late Paying Customers?
Sadly, you’re not alone. It’s well known that SMEs struggle with late paying customers; despite having standard payment terms of 30 days. As you are probably only too well aware, few customers pay on time; with many leaving it to 60, even 90 days to pay. In that time, your own bills and overheads are due. In short, leaving you with no cash to pay suppliers’ bills on time, let alone an unexpected tax bill.
Not having control of your cashflow can cripple a business: In the words of Sir Richard Branson, “Never take your eyes off the cashflow, because it is the life blood of business". And he’s right.
But Help Is At Hand!
Thankfully, here at Calverton, we offer an award winning range of Invoice Factoring options for SME businesses, just like yours – ensuring you are back in control of your cashflow!
Simply put, invoice factoring pays you up to 90% of each of your issues invoices (regardless of when you might get paid), with the balance paid to you when your customers settle their account.
- You issue your customer their invoice in your usual way; you then send us a copy.
- 90% of the total invoice is paid to you within 24 hours directly by us!
- On your behalf, acting as if we were your own credit control team, we chase payment so you don’t have to – leaving you time to concentrate on making money, not chasing money!
- When your customer pays you will receive the remaining balance – minus our very reasonable and competitive fees.
For immediate control of your cashflow, get in touch with our experienced and professional team today and see how our flexible and tailored range of invoice factoring options will provide you with the cashflow to pay everyone on time (including HMRC).