Outsourcing eases late payment strain on UK SMEs

LONDON, UNITED KINGDOM — With UK small businesses incurring approximately £684 million (US$871 million) in losses annually due to late payments, the strategic outsourcing of Accounts Receivables Management is emerging as a crucial solution.

On average, these businesses face a delay of 6 days in receiving payments, causing operational setbacks and hampered growth.

Ajay Mehta, CEO of outsourcing service provider IBN Technologies, explained that delayed payments harm operational efficiency, cash flow, and customer relationships of businesses.

According to the Federation of Small Businesses (FSB), 52% of UK small businesses encounter payment delays. A study by Xero aligns with this, revealing that nearly half of all invoices from these entities experience tardy payments, with 12% postponed by over a month.

Recognizing this financial challenge, IBN Technologies offers a Quote-to-Cash (Q2C) solution that oversees the financial journey from the initial quote to receiving payment. Their Record-to-Report (R2R) also services further equip businesses with financial clarity and robust risk management tools.

Additionally, IBN’s AR Automation Solutions use technology to streamline the Accounts Receivables process, minimizing errors and expediting payment collection. 

“We understand the challenges that late payments pose for small businesses, and our strategic outsourcing solutions are tailored to alleviate this burden. We enable businesses to regain control of their finances, providing them with the resources and expertise they need to thrive,” Mehta added.