CASH is king, so the saying goes. Without it, sales and potential orders could be lost because of a lack of funding. Cashflow is needed to allow firms to take on more work. That applies small and medium-sized businesses and organisations – those who have missed out on potential revenue because they haven’t got the cash to make it work.
Obtaining money can be challenging for companies even post recession. It is vital they try to secure the right type of deal, either by way of loan, or another source, to prevent missing out on further opportunities.
Make sure you shop around. If the bank doesn’t oblige, try other avenues such as private equity or one of the on-line business lending marketplaces.
Factoring has the added benefit of chasing and receiving payment. Releasing cash tied up in your sales ledger provides essential cash-flow for your business. As soon as the invoice is raised you are advanced funds against it, up to 95% of the invoice value. So, don’t let income slip through your fingers. The banks might be saying no. As far as taking on orders, your business doesn’t have to.