Get Your Cash Flowing

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.

Alternatives to bank funding have to be found, with invoice discounting and factoring seen as worthwhile options.

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.

Or, maybe you could consider invoice discounting or factoring. Both will lend you money against your outstanding sales ledger.

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.



4 Comments

  • Sarah Cakebread

    It's effecting my job as been asked to work less hours !!

  • Clive Barrett

    That's another aspect of a business that isn't able to take on the work it needs to, to thrive, Sarah. I hope you are coping with less hours.It's more important than ever that companies are able to get that cash flow boost they need to help people like yourself keep busy. Best of luck.

  • Mark Hammer

    Invoice discounting can be a great way to ease cash flow. It comes at a price of course because you have to pay the company a commission if that's how you want to play it. I guess everything comes at a price and you have to weigh up the pros and cons.

  • Thanks for another fantastic article. Where else could anyone get that kind of info in such an ideal way of writing? I have a presentation next week, and I am on the look for such information.

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