Prepare for Christmas with Invoice Finance as a Cash Flow Solution.
October is the time to prepare for Christmas with invoice finance as a cash flow solution. Christmas is a time for joy, family, and giving. There’s no other season which brings love and laughter to our hearts quite like Christmas, seeing all the decorative lights and wrapping presents over a mug of hot chocolate – pure joy.
For seasonal businesses, it can also be a time of stress. Whilst increased sales bring in additional footfall and capital into the business. More money is spent behind the scenes to facilitate:
- Marketing: New seasonal product ranges require advertising. Some companies increase their operating hours, marketing can be utilized to advise their clients of this.
- Product purchasing and production: Increased sales require increased purchasing and production of products.
- Transport and storage: Products and materials require shipping and storage.
- Additional staff: Some companies expand their workforce during seasonal sales to ensure client satisfaction and production targets are met.
The cost of these expenditures will eventually be returned into the business though the increase in sales. However, as the require upfront payment it is easy for cash reserves to dwindle. This can lead to cash flow issues.
Here at Partnership Invoice Finance, we understand the challenges businesses face during the festive period. That’s why we’re here to provide you with invoice finance as a cash flow solution that can help you make the most of this festive sales period.
What is Invoice Finance?
Invoice finance offers several benefits that can be especially helpful during the Christmas season:
1. Improved Cash Flow: Invoice financing helps bridge the payment gap between issuing an invoice and receiving payment from customers. Invoicing periods can range from 30 – 90 days after the product or service has been supplied, causing a payment gap. This means you have the cash flow you need to meet your immediate obligations, and continue to take advantage of Christmas trading opportunities.
2. Flexibility: Invoice finance is a flexible solution that can be tailored to each business’s specific needs. In addition to this funding grows alongside the business.
3. Peace of Mind: Knowing that you have a reliable source of funding can give you the peace of mind you need to focus on running your business.
4. Maintain Strong Supplier Relationships: By having access to immediate cash flow, you can ensure that you pay your suppliers on time. This helps you maintain good relationships with your suppliers and avoid any potential disruption to your supply chain.
Different Types of Invoice Finance.
Within invoice finance there are two distinct facilities, both of which provide the company with the same businesses as above. However, dependant on the businesses needs, either invoice factoring or invoice discounting will be better suited. We will lay out the differences between the two services and inform you of how we at Partnership Invoice Finance carry out these facilities:
Invoice Factoring (Recourse Factoring)
The difference: This funding solution offers comprehensive sales ledger management (outsourced credit control), from transaction notification to debt collection. Invoice factoring is more suited towards businesses who would benefit from outsourced credit control which allows them to redirect resources back into the business.
What we do differently: We prioritise personalised service over automated systems, ensuring efficient and effective debt management. Our focus on building strong customer relationships and timely communication drives prompt payments. We keep you informed about any disputes or payment issues, allowing you to maintain control.
Invoice Discounting (Disclosed Invoice Discounting)
The difference: With invoice discounting the company stays in control of its sales ledger and carries out its own credit control. This facility is more suited towards businesses who have strong sales ledger management. The maintenance of a shadow ledger by the provider eliminates the need for traditional monthly reconciliations, offering greater flexibility and speed. By allocating cash as it’s received, we avoid delays caused by month-end adjustments.
Combined with your existing controls, this funding solution can help your business scale without limitations.
What we do differently: Throughout our clients journey we ensure that personalised contact is maintained
Partnership Invoice Finance: Your Trusted Partner for Christmas Cash Flow.
At Partnership Invoice Finance, we have a proven track record of helping businesses achieve their Christmas sales goals. We offer an efficient application and decision-making process, where our experienced team will work closely with you to understand your unique business needs and develop a customised invoice finance solution.
We are committed to providing our clients with exceptional service and support. That’s why each client has a dedicated account manager, who is their point of contact throughout the entire process.
Our online portal provides real-time access to account information, empowering you to make informed credit decisions.
Here are 3 additional tips for preparing your business for Christmas:
- Start planning early: The earlier you start planning for Christmas, the better. This will give you time to develop a sales strategy, secure inventory, and put financing in place.
- Forecast your sales: Try to forecast your Christmas sales as accurately as possible. This will help you determine how much funding you’ll need from invoice finance.
- Review your inventory levels: Make sure you have enough inventory to meet Christmas demand. However, avoid overstocking, as this can tie up your cash flow.
By partnering with Partnership Invoice Finance, you can harness invoice finance as a cash flow solution this Christmas.
