Although it isn’t rare that a business faces uncertain times, the current situation with COVID-19 is unprecedented. With the UK on a near complete lockdown, only business deemed essential such as supermarkets, waste disposal and of course, health services remain open. All other, non-essential business, have been placed into lockdown with the rest of the country with no clear sign of when the lockdown will lift.
The quarantine isn’t just affecting small business that have recently started up either. Large corporations are feeling the sting of the lack of income and many are struggling to pay staff, meaning the Government has had to step in to offer an 80% wage payment furlough scheme.
There are certain ways that business can borrow money, even in these uncertain times, that are trusted and can help them ensure staff are paid and a business has less to worry about. You can visit our business finance section to explore a range of options including merchant cash advances and asset finance. Another such option is invoice financing:
When a company borrows money using invoice financing they are actually borrowing against money that is owed to them via other companies already. These amounts are calculated via unpaid invoices that are currently outstanding, which we know in modern business can equate to a lot.
Unpaid or late invoices are a problem every UK business faces and is unfortunately a common problem that can pose financial difficulties. Small businesses that are in their infancy require all available capital in order to expand, and failing to secure money owed to them via invoices can place a financial strain that can be difficult to recover from.
With the current situation, every company is feeling a financial strain but invoice finance provides that vital option of acquiring money owed in unpaid invoices immediately with just a small percentage taken by the lender as they recoup the costs directly from those whom the invoices were issued to. Compare top invoice factoring companies today with Quote Goat.