Company Cashflow Solutions – Is invoice Factoring a good option for your business?
The timing of cashflow can be all important in making or breaking a business and, for company cashflow solutions, the main question on business-owners’ lips are: “Can Invoice Factoring solve our cashflow worries?
Well, in a nutshell, yes it can.
Ideally, money made from trading would come in before, for example, a major bill had to be paid or tax was due. It would be ideal, say, if the money you have earned was paid before your staff need to be paid.
As a business owner considering company cashflow solutions, you always have to have one eye on whether or not you have a shortfall of funds. The old adage ‘sales is vanity, profit is sanity, but cash is reality’ certainly comes to mind! If you have a shortfall, it is known as a cashflow gap, and this can cause concern for Company Directors.
A cashflow gap can widen around the end of the month, especially when wages need to be paid. At the same time invoices issued to debtors from the same period may not be paid into the business for 30, 60 or even 90 days.
A cashflow gap could also increase due to:
- Suppliers tightening credit terms
- Customers going bankrupt
- Insufficient bank facilities available
- Poor credit control
- Not forecasting ahead
So, as long as your business is offering credit terms, the potential for a cashflow gap to appear will always be there. But there are ways to plug a cashflow gap, and at this point you may be considering company cashflow solutions.
Factoring is one way that can help ensure a fluid cashflow within your business.
See our short vid HERE
Can Invoice Factoring really help?
Invoice factoring is now the most common form of company cashflow solutions in the UK. It has two main components, which make it so widely popular as a form of invoice finance:
- You get cash against invoices immediately. This could be up to 90% of the value of your invoices, released up-front to your business
- As it involves advancing a fixed proportion of each invoice, the money available to you increases automatically in line with your business’ growth
- This means you can borrow more as your sales grow
- Our affiliated partners then take control of the client’s sales ledger and the collection of outstanding debts
- Our partners are experts in debt management, akin to ourselves, and provide a service which differs completely from a traditional overdraft
- Payments are chased professionally and efficiently, to ensure you get the money you are owed by your debtors as soon as possible. This is an extremely effective service for a business that doesn’t have an established credit management procedure
This facility is disclosed to the debtors, who will be informed on the invoice that they need to make payment directly to us.
What are the other benefits of Company Cashflow Solutions such as Invoice Factoring?
- The facility keeps pace with the growth of a business
- Savings can be made on debt collection and sales ledger management, as we can do all this for you
- You can receive funds within 24 hours
- Invoice factoring is very well priced against traditional business loans and overdrafts
- Allows you know when funds are going into your bank account, rather than the uncertainty of when invoices will be paid
- You don’t have to secure a loan against any other assets meaning more flexibility for your business
- Our affiliated partners will ensure you have a dedicated Relationship Manager throughout the lifetime of your facility. That means no automated telephone services and no call centres. Just the direct contact details of a highly-trained and efficient Relationship Manager.
We can help your business grow in difficult times!
Being backed by one of the largest and most trustworthy financial establishments in the country for company cashflow solutions, our affiliated business partners have cash ready to lend to SMEs up and down the country.
Get in touch by calling us at 0843 309 1633, or emailing firstname.lastname@example.org. Alternatively, we can call you back with more information; just click the big RED enquire button on the right hand side column.