Bridging the cash flow gap
Forging links with local business could help you beat the recession.
The business support to weather the storm.
With cash flow more of a problem than ever during an economic downturn, invoice finance is proving an attractive option for an increasing number of businesses.
It’s an option that Karen Hamilton, Head of Broking at Cashflow UK, would recommend to companies who need access to all the money they have tied up in 30, 60 or 90-day invoice periods – but with one proviso.
“Make sure that the deal you sign up to is the best one for your company - and don’t just go for the first factoring company you find on the internet, however persuasive their website is,” she explained.
Cashflow UK, specialises in advising companies on the best way to ease their cash flow problems by signing up with the financing specialist that suits them best.
“The important thing to remember is that this is not a ‘one size fits all’ marketplace. There is a best option for each individual company, depending on their circumstances, and finding that deal is where Cashflow UK can make a difference.
“We make sure we understand the business before we advise the owner and we keep in touch to make sure that they remain happy with that advice,” Karen explained.
Factoring provides a company with instant access to a large percentage of the value of their monthly invoices, which means they can pay their overheads and buy raw materials even if customers take as long as 90 days to pay their bills. The final percentage of the invoice – minus a small charge – is forwarded when the bill is paid.
“In one case a security company was struggling to pay its staff weekly because its customers were taking over 45 days to pay them,” explained Karen.
“Cashflow UK introduced a funder who visited that same afternoon, and two days later they had 80 per cent of their outstanding invoice value in the Bank.
“It is those businesses that get the right financial support in place that weather the storm and enjoy continued business success.”
Invoice financing currently provides around £15bn to more than 47,000 small and medium sized businesses throughout the UK.
Contact Karen Hamilton on 0800 132 156 or by emailing karen@cashflowuk.com
