Don’t Let Cash Flow Hinder Your Business Growth

Growing your company is a challenging and rewarding process but growing can be painful. Very painful. Making sure that your cash flow can meet your obligations as you take on more staff, bigger premises, more stock, or new equipment is a challenge. It doesn’t matter how well established your company is, if you don’t have a handle on your cash flow then you won’t survive the growth spurt.

As you expand your business increased costs and financial strains start to appear. You may have a stable cash flow at first, but very soon that additional financial strain starts to creep in.


Hidden financial costs

As well as the more visible and obvious costs of growing your business, there are hidden growing pains such as training new staff, which often involves taking existing key staff away from their work to help with the training process. There’s also the time that it takes for new employees to become proficient and up to speed with your business operations and processes. It’s these hidden costs that you don’t see coming, or envisage, that start to silently eat away at your cash flow if you’re not careful.


What’s the solution?

As a company owner who’s looking to expand your business, take on more staff or purchase new equipment, invoice financing is the answer for you. Invoice finance can help make sure that your cash flow is managed and at Partnership Invoice Finance this is specifically aimed at small and medium-sized businesses.

Factoring is an alternative form of finance that allows your company to access cash sooner than waiting for payment from customers. It’s a facility that grows with you; a way to manage your cash flow, reducing the time pressures admin and stress of collecting payments yourself. It’s like having a hidden financial department and safety net. As you grow your business, it keeps pace with your needs and will help support growth.

The truth about factoring is, it’s a wise choice for a growing business and is ideal for small-medium businesses selling to other businesses on credit terms.

  • Factoring provides access to cash without the business having to sell inventory or other assets to pay urgent bills at a time or price that may not be right.
  • Factoring is a far more flexible option than traditional borrowing- providing finance that grows as you do.
  • You don’t have to provide additional personal collateral for factoring, which is often required when you take out loans from banks and other financial institutions.
  • Application process and sanction for factoring with Partnership is quicker than the Bank- usually, a facility is agreed within 48 hours with the first drawdown of cash to you shortly after.
  • Factoring is an efficient and flexible way of borrowing money

Factoring gives you access to the value of invoices before they are paid-typically within 48 hours of raising them and whilst most businesses have their whole turnover funded, you can elect to choose which customers your business would like to factor. The financier then provides the funding and manages every aspect of your credit control, saving you time and money.

Any growing business depends on maintaining a stable, strong cash flow. Invoice finance is the perfect solution to keep your business finances in the black and maintain growth. Contact us so we can advise you how Partnership Invoice Finance can help your growing business.