New finance product for small businesses
SMALL businesses in Kerry are being encouraged to avail of a new flexible finance product designed to ease the pressure on their finances arising from late payments from customers and clients.
In recent weeks the Small Firms Association's have raised the issue of slow payments which the association say are causing serious problems for many SMEs.
A SFA survey showed that 59 per cent of SME owner managers across Ireland believe late payments are seriously damaging to their cash flow.
Of those surveyed in Kerry a staggering 73 per cent said that payments are regularly more than 30 days late.
To avoid problems with late payments small businesses are being encouraged to avail of a new loan product being offered by several financial services companies.
One such product is being offered by Close Brothers Commercial Financing who are offering customers a product called an invoice finance facility.
The facility is a flexible method of funding that can work alongside bank lending.
For companies using the product whenever they issue a customer invoice Close Financing deposit up to 85 per cent of its value into their client's account.
Essentially this means that businesses can get money up front rather than waiting 30, 60 or even 90 days for payment, thus alleviating the myriad of problems that late payments bring.
Once the customer pays the invoice via Close Brothers they release the balance, less a small charge.