In an ideal world, all customers would pay for goods or services as they take them and cashflow would not be a problem for businesses. Money would flow through the various business channels, the sun would always shine and we’d live in a never-ending boom!
Unfortunately, in today’s highly-competitive corporate world, it’s not that easy, with customers demanding 30, 60 and even 90 day credit terms.
Businesses still face the perennial requirement to pay wages and suppliers, whilst waiting for the cash from their own customers to come in.
This can cause a strain on any business, particularly one which is looking to grow and reach its full potential!
What about bank funding?
In the current environment, it is becoming increasingly difficult to plug this cashflow gap using the traditional sources of business funding through the local bank.
Despite the constant tiring rhetoric and both government and banking sector protestations to the contrary, the cold hard facts show that it remains very difficult to obtain additional bank funding.
The lucky ones who can secure finance may well be paying significantly more than in previous years and having to provide increased levels of personal security.
Many business owners have exhausted vast amounts of personal funds over the last few recessionary years just to help keep the businesses afloat and now, with house prices at all time lows, equity release just isn’t an option.
So where can the much-maligned SME and small business owner go for cash?
A flexible alternative – Invoice Finance
The smart owner managers have realised they can release the cash tied up in their invoices via invoice finance providers. These alternative lenders will buy the outstanding invoices and advance as much as 90% within 24 hours. This takes the strain out of the cashflow and provides a much-needed boost to a business’s liquidity.
At Skipton Business Finance we have kept our doors open to all sorts of owner-managed businesses, providing working capital facilities throughout the difficult credit crunch years. We are committed to supporting SMEs and assisting businesses reach their full potential, as, after all, their success determines our success.
Why not browse our website today to find out more about how invoice finance can help quickly release your cashflow, or give us a call on 0845 602 9354 for a chat and a free no-obligation quote.