IT’S official – businesses aren’t getting enough. Sales that is. The reason? Well, potential orders are being lost because of a lack of funding. Cash-flow is needed to allow firms to take on more work. And it’s just not happening, with a large proportion of small and medium-sized businesses and organisations believing they have missed out on potential revenue because they haven’t got the cash to make it work.
The prediction is that obtaining money will be just as challenging in the coming year. While the building and construction industry is believed to be worst hit, no company is exempt and 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.