7 in 10 SMEs missing out on benefits of invoice finance: survey

GlobalData

Tue, Apr 8, 2025, 4:59 AM 2 min read

New information from autarkic concern business supplier Time Finance has revealed a deficiency of SME consciousness and knowing of invoice finance, with implicit 70% of the SME concern assemblage either unaware of oregon opting retired of the cashflow concern solution.

The information forms portion of Time Finance’s Finance Apathy survey successful concern with Censuswide, which gathered penetration from 500 SME owners and determination makers connected their attitudes towards concern finance.

Delving into the consciousness and usage of Invoice Finance, the survey recovered that amongst SMEs, lone 28% are alert of and usage this concern solution, with 44% alert of invoice concern but choosing not to physique it into their fiscal planning.

Of those surveyed, 24% weren’t alert of Invoice Finance, ranking the merchandise amongst the lesser-known concern business solutions alongside Asset Based Lending (ABL), which fell abbreviated successful consciousness for 36% of respondents.

This compares with the much acquainted forms of concern finance, specified arsenic commercialized loans, which 94% of SME respondents were alert of. Loans besides topped the array of astir utilised signifier of finance, utilized by 40% of respondents.

The caller information has been commissioned by Time Finance to recognize the consciousness and cognition of antithetic concern business amongst SMEs, to situation increasing apathy and assistance span the spread to unlock concern growth.

Highlighting the deficiency of SME consciousness of Invoice Finance, Time Finance’s survey intimately follows the motorboat of the Government’s Fair Payment Code and its plans to ace down connected invoice precocious payment, which is estimated to outgo SMEs £22,000 a year*.

Launched successful September 2024, the caller codification volition necessitate each ample businesses to see outgo reporting successful their yearly reports, with consultation connected further measures expected this year.

Phil Chesham, Managing Director of Invoice Finance astatine Time Finance, commented: “Despite years of pledges from the Government, the measures brought guardant person failed to tackle the issue, and precocious outgo continues to endanger businesses. At best, it tin stifle growth, and astatine worst, it tin endanger concern survival. This is wherever the powerfulness of invoice concern comes in.

“Invoice Finance has been a comparatively chartless and misunderstood concern solution amongst businesses for years, and the astir communal misconception is that it is lone utile to those with cashflow challenges.

"It’s existent that it tin inject superior into a concern to assistance with overheads, but it is besides a almighty instrumentality to unlock concern opportunities. If a concern proprietor has aspirations to turn but lacks the wealth to bash so, they request look nary further than their unpaid invoices to entree moving capital."