| According to recent figures, average payment | | | | deliver commercial finance solutions. |
| arrears throughout Europe now stand at 53 days. | | | | Mr Davenport commented, "Companies which are |
| When supplier terms are taken into account from | | | | expanding rapidly or businesses which struggling with |
| low-cost areas such as the Far East and Asia, the | | | | managing cash flow need to consider this option or |
| funding gap for businesses can extend well beyond | | | | risk being passed by the competition. They may be |
| 120 days. This can cripple cash flow for European | | | | good at product development but don't necessarily |
| businesses which in turn can have a negative impact | | | | have the systems in place to manage their accounts |
| on profits, expansion and their overall existence. | | | | receivables. The old expression that 'Cash is King' has |
| Tracey Davenport, Relationship Director with a | | | | never been truer - when a business is fully leveraging |
| leading European commercial bank, encounters this on | | | | all their debtors, they are in a position to negotiate |
| a daily basis. "You're seeing shorter payment terms | | | | better supplier terms along with reducing other |
| and longer terms for debts remaining unpaid | | | | financial obligations putting the company in the |
| throughout the UK and Europe. One of the biggest | | | | position to expand and grow." |
| assets for most businesses is their debtors, but most | | | | Commercial finance providers can offer a range of |
| High Street banks continue to offer little support for | | | | bespoke solutions to match your particular |
| funding European debtors. With businesses expanding | | | | requirements. If you are a well-established business |
| their markets every day, companies understand the | | | | with strong systems and procedures, you may |
| advantage of having a cross border commercial | | | | prefer to retain control of your sales ledger in-house. |
| finance partner to assist their business plans going | | | | Alternatively, if you are a fast-growing young |
| forward." | | | | enterprise, you may benefit from the complete |
| Many factors are driving companies to outsourcing | | | | outsourcing your credit management process |
| their European accounts receivables. Pending Basel II | | | | reducing time and the cost of having a dedicated |
| regulations have made commercial banks more alert | | | | in-house resource. For an established exporter or a |
| to risks. When providing credit, commercial banks are | | | | business considering branching out overseas, a |
| attaching increasing importance of proper risk | | | | commercial finance solution could help to alleviate the |
| management by companies. Considering that 25% of | | | | adverse effects of extended payment terms and |
| unpaid bills are never collected, insolvency of a | | | | through an international provider provide information |
| foreign customer difficult to determine and national | | | | on your overseas debtors' credit worthiness. |
| laws difficult to comprehend - businesses continue to | | | | Your sales ledger is an asset, make it work for you |
| source providers with specific country expertise to | | | | now. |