New £1bn fund to finance unpaid invoices

By James Ridler contact

- Last updated on GMT

Azzurro Associates is offering to pay unpaid invoices
Azzurro Associates is offering to pay unpaid invoices

Related tags: coronavirus

Food and drink businesses with £50k–£10m in unpaid invoices could soon benefit from a new £1bn funding scheme from finance provider Azzurro Associates.

Open to small and medium-sized enterprises (SMEs), with a focus on food and drink firms, Azzurro has offered to buy unpaid invoices and help businesses clear growing debts.

With some smaller suppliers going unpaid in the wake of the coronavirus outbreak, the service could provide a lifeline for food firms that would have been forced to write off bad debts or take costly legal action to secure payment.

Unlike some other finance providers, Azzurro will provide cash for overdue and written-off invoices that businesses are struggling to collect. Firms with many smaller invoices can also combine their total cost to reach the £50,000 minimum, so long as the smallest invoice is at least £500.

Overdue invoices

Once Azzurro has recovered its purchase price for the overdue invoices, it will share an agreed percentage of all further recoveries with businesses – up to 50% of the value of the invoice, shared with the business on a monthly basis.

Azzurro has positioned its unpaid invoice buying service as an alternative to existing Government loans – such as the Coronavirus Business Interruption Loan – for businesses that need cashflow faster than it takes to get this sort of funding off the ground.

Chief executive Andrew Birkwood said: “Faced with months of costly legal action to achieve payment of an invoice, most businesses simply accept bad debts and write them off. There is now a better option.

“We’re looking to provide a vital source of liquidity for British businesses. Generating immediate cash from bad debts could be the solution for many companies facing a coronavirus cashflow crunch.”

Government support

Interim small business commissioner Philip King voiced his support for the new initiative, a move he hoped would bring together the wider business community and help SMEs in this trying time.

“As the interim Small Business Commissioner, I’m doing everything I can to make payment prompt and to support small businesses generate the cash flow that is so critical,” ​he added. “At times like these, we need creative ideas and I’m delighted to see so many organisations like Azzurro introduce different and innovative solutions.”

Companies that wish to benefit from Azzurro’s new scheme can find more information on how to apply on its website.

Meanwhile, the impact of the coronavirus has prompted Danone to speed up payment to its suppliers​ via a new platform supplied by C2FO.

Related topics: COVID-19, Operations

Related news

Show more

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more

Webinars