Why Do So Few UK Businesses Use Invoice Finance?

Recent figures from the Asset Based Finance Association report that as at September 2009, just 42,983 UK businesses use invoice finance provided via their membership. This represents just 0.73% of the total number of UK businesses currently listed in Dun & Bradstreet’s Marketplace of UK Businesses Database.In order to try and find out the reasons for this low take up of invoice financing, we commissioned a piece of research that involved telephone interviews with 100 SMEs (Small & Medium Sized Businesses) to better understand their attitudes to invoice finance.We asked those businesses:”Why do you think that so few businesses in the UK use invoice finance?”Research ResultsThe results were as follows:41% said due to cost.31% said that it was not promoted enough and businesses hadn’t heard of it.18% said it was easier to use overdrafts or loans.10% said it was due to the bad reputation they associated with using the products.Those are interesting answers as they demonstrate how poorly promoted these products have been, and how widespread misunderstandings about these products are.Analysis of Those ResultsTaking each response in order, there are some key points that businesses seem to have misunderstood.41% – CostWe recently constructed and published a factoring savings calculator that demonstrated how a business could use factoring (a form of invoice finance) and achieve savings that would more than offset any fees incurred and could create a net cost reduction to the business. These savings are made possible through using the outsourced credit control function that comes with factoring and by seeking supplier discounts for cash payments made possible by the cash released from factoring.31% Not Promoted Enough / Hadn’t Heard Of ItThis lack of promotion of these flexible working capital products, by the invoice finance industry, is clearly something that is contributing to the low take up of these products and the lack of understanding about how these facilities work.18% Easier To Use Overdraft Or LoansThere are several points to consider here.Firstly, the amount of work required of a client to run some invoice finance facilities is absolutely minimal. There are products on the market that have eradicated the need for reconciliations and technological developments mean that invoices can often by uploaded electronically, and automatically, straight from the client’s sales ledger package. The client can even choose to have cash transferred to their account as it becomes available so they don’t even have to request it.Even if we assumed that overdrafts were easier to use, there are a number of advantages of invoice finance over overdrafts and loans:* Overdrafts and loans do not grow in line with growth in business turnover whereas invoice finance does.* The level of funding released by invoice finance is likely to exceed what can be raised through overdrafts and loans.* Overdrafts and loans often require a net worth in the business and a profitable trading history whereas invoice finance can be available to loss making businesses even thought they have a negative net worth.10% Bad ReputationA small number of respondents felt that using invoice finance could be bad for their reputation if other businesses knew about it. I would argue it could also be good for their reputation, as their cash flow will improve, but taking their concerns on board there are facilities available that are completely confidential. The client’s customers will not be aware that they are using it and this overcomes any concerns they may have.SummarySo in summary, there appears to have been little promotion of invoice finance in the UK and hence little knowledge of invoice finance is evident amongst UK businesses. This together with a great deal of misunderstanding about the facilities that are available under the banner of invoice finance is probably what is currently causing the low level of take up of these flexible forms of working capital finance.

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A Guide to Help You Pick the Best Air Purifier for Your Loved Ones

Holidays are around the corner. This is the time of year when people start purchasing gifts for their loved ones. If you are going to purchase an air purifier for someone you love, we have some helpful tips for you. If you want to purchase the best unit, you may be able to use this guide to your advantage. Read on to find out more.

1: Set Your Budget

Just like anything you purchase, make sure you have set your budget first. The price of the unit will vary based on a lot of factors, such as the capacity, filter type, features, and brand of the unit. If you don’t have a flexible budget, we suggest that you go for a product that is available to purchase for less than $300.

2: Consider the Needs of the Recipient

Your next move is to consider the needs of your recipient. If you are going to purchase this unit for everyday use, we suggest that you go for a unit that comes with a HEPA filter. On the other hand, if your loved one has a specific need, we suggest that you consider a specialized unit.

For example, if they are more prone to respiratory issues, such as allergies and infections, we suggest that you get a UV purifier for them. The devices are designed to neutralize viruses and bacteria.

3: Think About the Available Space

Another primary factor is to consider the available space in the office or house of the recipient. For example, if they need a general-purpose unit for a small apartment, you may want to consider a filterless unit.

On the other hand, if they have plenty of free space, you may consider a bigger unit that features a higher airflow rating. These units are powerful enough to cover a large face.

4: Consider Extra Features

Lastly, we suggest that you consider additional features that they will just love. For example, some units come with an indicator that turns on when the filter needs to be replaced. This will allow the user to change the filter so that the device continues to work properly.

So, you may want to consider these features before you place your order. These features may not be important to you, but your friend may just be over the moon.

Long story short, we suggest that you consider these four tips if you are going to purchase a gift for your loved one on these holidays. Since the air is full of pollution during winter days, nothing can make a better gift than an air purifier. Therefore, you should consider these tips before looking for an online or physical store to make your purchase decision.

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Don’t Be Scared To Pay For Ads On Social Media

When you’re using social media marketing to get the word out about your business, it’s important to understand that using organic methods is the long haul.

But, there are ways to speed up the process. Sometimes the best way to get your word out is to pay for it. Paying doesn’t mean you’re succumbing; it means that you’re smart. It’s important not to be afraid of paying for ads, because it’s a fast way to get more reach and make more conversions if you have the right content.

To run ads the right way, you need to be clear on a few options first. These include:

Learn the Platform

Before you post any ads, it’s imperative that you understand how to use the platform properly for placing your advertisement and targeting your audience. Using it right will make a huge difference. Using it the wrong way will waste your money.

Hire Someone

If you don’t know how to run an advertisement profitably, you may want to consider hiring an expert. Choose someone with a track record of success. If they do their job properly it should not cost you anything as their fee will be a small percentage of the extra profits you generate from your ads.

Know Your Target Audience

If you don’t know who your target audience is, it’s too soon for you to try to run paid ads. Fully understand exactly who your ideal customer is before you get started.

Ensure Your Content Is Perfected

Before running ads, you want to ensure that your content is otherwise perfected. Although you can run tests and continue to run tests even with imperfect content, try to get it close to perfect before using it for an advertisement.

Spend the Right Amount

You need an understanding of how much money you should spend on any given advertisement. Some platforms like Facebook are good at making suggestions. Start with a small budget and then scale up as you start to get the response you want.

Watch the Data

Once you do place an advertisement, you want to monitor the data to ensure that what you’re doing is working. That way you can tweak it as you go.

It’s important not to be afraid of paying for advertisements. It can make a huge difference in how fast you expand your reach and start making a profit, getting more email sign-ups, and building your audience.

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