Consider this - the orders are coming in faster than you can churn them out. This is an enviable position for any business. You can taste success. Well, almost. The taste dries up quickly because you are struggling to cope with the demands on your cashflow. Here's where cashflow finance helps.
One option is Factoring, which releases money from your sales ledger and grows in line with your business. Your sales invoices are forwarded to a factoring company who will immediately advance up to 85% of the invoice value. Once the invoice has been paid by your customer, the remaining 15% is paid minus the factoring fee. Ideal for startups and owner-managed firms who hate chasing their own payments.
YOU CAN TASTE SUCCESS.
IT DRIES UP QUICKLY BECAUSE YOU'RE STRUGGLING TO COPE WITH THE
DEMANDS OF YOUR CASHFLOW.
WE CAN HELP.
Another option is Invoice Discounting, similar to factoring, which is available to companies with a balance sheet value in excess of £50,000. The main difference is that the company retains responsibility for chasing their own ledger. Ideal for those situations when you don't want to disclose that the company is providing funding against their invoices. This type of facility is available to companies that have excellent audit trails, and can demonstrate the ability to collect debt in-house. It's a preferred route because it enables companies to maintain their existing relationships with their customers, as well as being cheaper in terms of services charges involved.
Yet another option is Single Invoice Finance, which works in a similar way to factoring except you can fund single invoices. Good cashflow is essential for the smooth running of your business, especially for SMEs, but your customers don't work to your cashflow requirement (let’s be honest, clients very rarely pay within a few days and can take 30, 60 or 90 days to pay an invoice).
With this option, the single sales invoice is forwarded to a specialist factoring company who will advance up to 85% of the invoice value. This can release cashflow without relying on a bank overdraft and does not tie you in to a contract. It can be used as a one-off option to fund that much sought after order, or may be used as an on-going option where businesses do not want to put all of their invoices through a traditional factoring or invoice discount facility.
We can even fund businesses in the construction sector, where finance via this method is notoriously difficult.