A large number of English manufacturers are feeling optimistic for growth, reinforcing recent reports regarding an upturn in the sector, new figures have indicated. 43% of manufacturing SMEs surveyed have seen an increase in orders over the last six months, whilst 62% expect overall sales turnover to grow over the following few months, the Manufacturing Advisory Service’s (MAS) Barometer revealed. More firms are expected to recruit (39%) whilst a little under half plan to invest in new premises and machinery (44%). However, 27% of owners felt that they didn’t have the time to be able to improve and grow their businesses, as everyday issues take precedence. Area Director for MAS in the North and West, Lorraine Holmes, said: “The overwhelming feeling (across manufacturers) is one of positivity, with order books, sales expectations, future investment in premises/machinery and the desire to create employment all up on the previous report.” Gary Foster, Corporate Manager for SBF, stated that the macro environment still poses a threat for manufacturers: “Keeping cashflow high, whilst continuing to seek out new orders and compete with rival firms, remains a challenge for many in a tricky economic climate”.
How to keep cashflow healthy
Manufacturers can keep their cashflow going in the right way through various methods, such as offering debtors early settlement discounts, asking suppliers for extended payment terms and increasing bank facilities. Another viable solution is through the use of invoice finance to fund outstanding invoicing. Invoice finance facilities, such as factoring and invoice discounting, provide your business with cash upfront for invoices, ending the agonising wait many face for payments to come in which can be up to 120 days in the current late payment culture. Why not give us a ring on 0845 602 9354, email us at info@skiptonbf.co.uk or browse our website for more information on how invoice finance works.