Research by Hitachi revealed that demand for extra funding in July was exceeded only by October, as staff taking annual leave caused invoice payments to slow.

In a blog, John Atkinson, Interim Managing Director at Hitachi Capital Finance, said: “The summer season can be a period of stress for a business as employees take holidays impacting on productivity and business performance.

“Invoice payments may take longer than usual to materialise during this summer period.

“When income levels slow down during this period, there is a knock-on effect to the working capital of a business causing cash flow issues later in the year.”

However, John insisted that there were ways to avoid the summer slowdown.

“Look into improved business forecasting as this could enable the business to plan ahead for any dip in trading activity and it may also be wise to delay non-essential expenditure during periods when cash flow is more likely to come under pressure,” he advised.

“Seasonal incentives could also be offered to encourage debtors to make prompt payments.

“By forward planning, and choosing an invoice finance partner you can trust it will help alleviate the pressure you might face in the summer period.”