What’s ahead in 2022? Are you prepared for extra costs?
As a small business owner, you already know what 2022 is likely to bring. Increased fuel costs, rent hikes and higher utility bills, and that’s before you even factor in any potential expansion. Are you and your business financially ready? These extra costs will have a significant impact on your business finances and cash flow. Then add to the above issues; chasing for unpaid invoices and payments due, you suddenly find yourself wading through some tricky water!
If you don’t currently have that peace of mind of knowing that your cash flow is healthy and stable, and your credit control is expertly managed, then invoice finance could be just the solution that your business needs to start 2022 as you mean to go on – in a great financial position with nothing holding you back!
Ensuring you have a cash flow buffer for extra costs and expansion
Maintaining a healthy and stable cash flow isn’t just about the here and now – it’s also about the future of your business. Ensuring you have a constant healthy cash flow means that your business is in a great financial position to be able to cover increased costs but also to be able to grow and expand your business when you want to.
Most businesses, big or small have at some point had to deal with a cash flow shortfall, however, for the small business trying to carry on and find a solution, is no easy task. Many traditional lenders are less inclined to lend financial help to small and relatively new businesses, leaving many business owners feeling lost and like they have very few options available to them.
Luckily, this doesn’t have to be the case. An extremely viable and flexible option is available and one tailored towards small businesses – invoice finance.
What is invoice finance and how can it help?
Invoice finance is a financial product that can help you manage cash flow. Back in the early days of invoice finance, it was one rule applies to all. You had little or no choice but to finance all your customers. However, employing the services of an accredited funder, offering invoice finance options today, leaves you firmly in control of when and what you factor.
Invoice finance flexibility means you’re in charge and decide how to use the facility. If you don’t need as much money one month, then just take what is useful and add value to your business. By only using the money when you require it, you reduce borrowing costs and ensure cash is always there when it is truly required.
Factoring gives you access to the value of invoices before they are paid – typically within 24 hours of raising them and together with this funding it manages every aspect of your credit control, saving you time and money. Invoice finance options have come a long way since its early days, and it is a fantastic way to protect and maintain your cash flow and give you the working capital you need.
Access to professionally managed credit control
At a time when you need access to cash without waiting for customers to settle, invoice factoring is the perfect solution to help keep your business ahead. For some businesses, it’s more about access to managed credit control than simply getting hold of their money early. Professional credit control is key to the success of any business, and it’s a highly specialised area. Many SMEs cannot justify investing in their own credit control department or dislike chasing for money, so outsourcing their credit control is a great solution.
Is invoice finance flexible enough for small businesses?
In the past invoice finance options were sometimes very restrictive and expensive and in some quarters had gained a bad reputation dating back to the early 1980s, but modern invoice finance is a world away from that. Gone are the days of being tied into exceptionally long, and difficult, contracts with expensive costs. Invoice finance is now a recognised tool that small-medium businesses can use to manage their cash flow, grow their business, and outsource their credit control.
You’re still the one in control!
Growing companies use invoice finance to effectively manage cash flow and outsource credit control to a professional company which in turn, frees you up to focus on the future and growth of your business.
When a business enters a factoring arrangement, whilst the funder is responsible for collecting payments from your customers themselves, they do not have any say in who you work with or which projects you take on. You still make all the critical business decisions and remain in full control of your business.
Invoice finance is for winners NOT losers…
In truth, invoice finance is not only easy to understand but also great for small businesses that want financial stability and cash flow at their fingertips. Contact us today to discuss your options and let us help take away some of your financial strain.