IT Companies

In the UK one of the biggest problems in the IT industry is the long delay it typically takes to get paid by customers .It is not uncommon for it to take 60 to 90 days from the time an IT company completes a job or contract to the time when the company actually gets paid. Large commercial or public sector organisations almost have an industry standard interval of 90 days from receipt of a service or goods to the time that payment is sent out.

Business Factoring in the UK for IT business is often essential for cash hungry IT businesses whereby a business sells its unpaid invoices to a third party (called a factor) at a discount in exchange for upfront money of up to 95% in value of the invoice with which to finance continued business.

• It can be tough for a growing IT or a new IT company to make ends meet before the 90 days are up and the payments start coming in.
• An IT companies’ employees are expect to get paid on time; which is usually monthly , and most of the operating expenses need to be covered on a monthly basis too. Some of the bills even need to be paid right up front.