UK manufacturing dropped in April 2011 – don’t let cashflow issues become a problem

The Office for National Statistics (ONS) figures revealed that manufacturing saw a sharp drop of 1.5% in production between March and April, the biggest monthly drop for over 2 years, as the royal wedding, two consecutive bank holidays and the impact of the Japanese tsunami hit hard.

The month, which featured only 18 working days, was particularly ‘unusual’, according to the ONS, due to the bank holiday weekend created by the royal wedding and the effects of the Japanese Tsunami.

Manufacturing companies in the UK often experience cash flow crunches when there is a drop in production rate and manufacturers have to purchase raw materials and pay staff long before they have sold the finished product.

Factoring and invoice finance specialists Skipton Business Finance understand that this can cause a drain working capital, especially when the manufacturer has to then wait for 30, 60 or even 90 days until an invoice has been paid.

Skipton Business Finance has successfully funded a number of manufacturers in the last 10 years with a range of flexible invoice factoring or invoice discounting solutions designed to release cash tied up in unpaid invoices and improve a business’ cashflow.

Manufacturers with such finance facilities have then been able to focus on other aspects of their business, such as expanding customer base and developing new clientele.

If you’re a manufacturing business and would like to discuss how invoice finance can benefit your business, please get in touch with us today.