Cash Flow – it’s harder than you think
You’ve built a business you’re proud of and now it’s time to expand. You want to grow, so you can increase revenue and your profits. Business growth is good, right? Of course, it is, but growth can be your undoing if you don’t plan for it or have the financial flexibility to support it. When cash is tight, and your bank says ‘no’ to a loan what do you do? Still take on more staff and invest in your business hoping it will be OK or delay the growth? How are you going to fund that expansion? Managing increased payroll is one of the most challenging aspects of business growth and one where usually, you have to employ ahead of taking on new business.
We’re constantly told that small businesses are the engine room of our economy, but it doesn’t mean cash flow isn’t an issue. It’s something everyone wants, access to cash when you need it, but what happens if cash is flowing out of your business faster than cash coming in? With growth comes cash flow challenges – a challenge many businesses have had to face at some point.
The ability to generate profits can often be deferred (jam tomorrow) but an unexpected cash-flow crunch can knock a small business for six immediately, and with cash flow issues typically the result of cash being tied up in unpaid invoices there is an easy solution.
So, how do you manage cash flow so that you have access to cash when you need it and can still expand your business?
What’s the answer?
Invoice finance – access to your cash quickly and easily. This is not a traditional fixed term, fixed amount loan, but rather a dynamic cash flow management system keeping pace with rising sales levels plus credit control at its best. Imagine having the peace of mind that comes from knowing that credit control is in hand ensuring invoices are paid as and when they fall due, and that your cash needs are met in advance of these invoices being settled. Your business can continue without cashflow anxiety, payrolls can be met, stock ordered, new contracts entered into and cash for growth acquired. Today it’s cash flow, tomorrow the world!
Access to your cash when you need it is critical. Invoice finance can help you manage this, and Partnership Invoice Finance can counsel you through it.
What’s invoice finance?
People previously believed that invoice finance carried more risk than traditional finance, that it was expensive and an option for those with no other alternative. This certainly isn’t true today. These days invoice finance companies, and particularly members of the UK Finance are accredited reputable companies’ who offer their clients a viable funding alternative offering security, stability flexibility and access to cash when they need it.
If you need a flexible line of credit to help manage cash flow, then invoice finance should be an important consideration for your business. Why try to do everything yourself working in your business instead of on it, instead enjoy access to professional outsourced credit control, 5 days a week throughout the year with no break for holidays, or those urgent jobs that keep you away from chasing the money you are owed – all this and access to your cash when you need it.
How Partnership Invoice Finance can help.
We want to help your business grow, which is why we offer invoice finance to start-ups, SME’s and those requiring funding up to, and in the region of, £750,000. We are a secure, stable, and reputable lender who offer our clients greater levels of transparency and control.
Entering into an invoice finance agreement is a fantastic way to get access to your money without giving up any equity or personal assets and allows for long term growth rather than short-term gain. Appointing an accredited lender to handle your invoice finance is a big decision – one that you need to get right. Contact us today so we can discuss your options.