Protect Your Business from Late Payments with Invoice Finance
Even with a watertight business plan, strong terms and conditions, and a loyal customer base, late payments still happen. In fact, they happen often. Recent figures show that over 50 percent of small and medium-sized enterprises in the UK experience late payments regularly. Some clients simply pay late as standard practice. Others delay due to internal processing times or cash flow problems of their own.
Government action is starting to address the issue. The latest GOV.UK crackdown aims to hold larger businesses accountable and tighten reporting obligations. But legislation alone does not solve the immediate cash flow problems caused by overdue invoices.
This is where invoice finance steps in. Not as a loan, not as a last resort, but as a frontline defence against late payments and unpredictable income. Let’s discuss how you can protect your business from late payments with invoice finance.
What Is Invoice Finance (in Simple Terms)
Invoice finance allows businesses to access cash that is tied up in accounts receivable. Instead of waiting 30, 60, or even 90 days for a customer to pay, a finance provider will advance between 80 to 90 % of the invoice value within 24 to 48 hours.
Once the customer pays, the remainder is returned to the business, minus an agreed fee.
There are two core models:
Disclosed invoice discounting, where the business manages its own credit control but still receives fast funding.
Recourse factoring, where the finance provider also takes over credit control and sales ledger management.
With recourse factoring, you do not just receive a cash injection. You also gain a structured, professional process to chase payments and reduce bad debt. This combination is particularly useful for growing businesses or companies that are struggling with the time, stress, or awkwardness of debt collection.
At Partnership Invoice Finance our support is human led. with no chatbots, no automated scripts, and no unanswered emails. Clients have direct access to senior decision makers and their relationship account managers.
How Recourse Factoring Helps SMEs Beat Late Payments
Recourse factoring is designed to address the root causes and consequences of payment delays. Here is how it works in practice.
Immediate Access to Cash
Your invoice may not be paid for another six weeks. But wages, rent, and supplier payments do not wait.
Recourse Factoring gives you access to a significant portion of the value within one or two business days. That means you can remain operational, keep growth plans moving, and avoid the knock on effects of short term cash shortfalls.
Outsourced Credit Control
Chasing payments can be difficult. For many owners, it feels awkward to follow up with a customer who is also a valued partner.
With recourse factoring, credit control is managed for you. Our team contacts your customers with professionalism and care. This ensures the relationship stays intact, and your internal time is freed up to focus on higher priorities.
It also creates consistency in follow up procedures, helping to speed up payments overall.
Visibility and Control
Sales ledger management is often neglected during busy periods. Yet without it, your view of outstanding invoices and expected cash flow becomes unclear.
With recourse factoring, your ledger is maintained as a priority. You receive regular reporting, updates, and full transparency. This helps you plan with confidence.
Bad Debt Prevention
Prevention is better than cure. We provide dedicated support and build a strong rapport with your clients. By utilising our expertise and experience to monitor your debtors, we can flag risky accounts early, and escalate where necessary. This helps to reduce the risk of long-term non-payment.
Our personalised and consistent communication aims to keep payments on track. When needed, we can work alongside your legal or financial teams to take further action.
When to Consider Invoice Finance
Invoice finance is not only for distressed businesses. Many of our clients are profitable, ambitious, and growing, they simply want a more reliable way to manage working capital.
You may want to consider recourse factoring if:
- Your invoices are regularly paid late.
- You are spending too much time chasing payments.
- Your team is stretched thin handling credit control.
- Cash flow is holding you back from hiring or expanding.
- You want better visibility into your accounts receivable.
- You need a funding solution that grows with your business.
Recourse factoring offers a double advantage. It improves cash flow while also removing the operational stress of managing incoming payments.
Stop Reacting and Start Protecting
A delayed payment should not dictate your future. You cannot always control when a customer decides to pay, but you can control how you respond.
Invoice finance is not just a short term fix. It is a proactive solution that strengthens your working capital, protects your growth, and frees up your time to focus on strategy instead of chasing debt.
With the right support, you can move from payment delays to predictable cash flow and sustainable growth.
We offer confidential, honest advice for businesses exploring invoice finance for the first time.
No Hidden Fees. Many traditional finance options look simple upfront, but include penalties, tiered pricing, or account service charges that are not clearly disclosed.
At Partnership Invoice Finance we believe in ethical, transparent funding. That means you will always know what fees are involved before signing any agreement. Nothing is hidden in the small print.
Speak with our team to find your funding fit.
Chris Falby
With over two decades dedicated to helping businesses in the South East thrive, Chris, Sales and Marketing Director, brings a wealth of knowledge in securing financial assistance for SMEs. His career began in mainstream banking, where he gained valuable experience managing advances. This foundation, coupled with his extensive network and expertise in independent funding, allows Chris to provide tailored invoice finance solutions that meet the unique needs of each client.