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UK government is considering introduction new laws to give small businesses more access to the finance they need to succeed. The laws are aimed at helping secure small businesses against unfair contracts that stop them raising money from unpaid invoices. Currently a small supplier’s contract with a larger company may prevent it from securing invoice finance from providers such as banks and other investors. “Invoice finance allows a business to raise funds by assigning their right to be paid (known as ‘receivables’) to a finance provider in exchange for funds, typically representing 80% of the value of the invoices. The initial advance is received within a few days and the balancing 20% (less fees and charges) is paid when the customer settles the invoice. Invoice finance is not borrowing, because the supplier is receiving an advance against a future payment …” explains Gov.uk. More detail here.

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