An alternative way to stabilise your cashflow

Are you struggling with your business cash flow?  If so, it might be time to consider an alternative method of finance that could provide you with a solution.  

When customers take time to settle their invoices, it can have a serious impact on cash flow.  And as it’s often the bigger companies who take the longest to pay, the outstanding sums can be significant.  With the current economic situation making everyone tighten their belts, invoices are being paid later and later, leaving supplier businesses floundering.

Even if your order books are full, without timely customer receipts there’s less money to buy raw materials and stock, service overheads or pay wages, putting the ability to fulfil new orders at risk.  A significant amount of otherwise successful businesses go bust every year as a result of poor cash flow.  And that’s an outcome that can be avoided.

A bank overdraft or loan has always seemed like the obvious choice to help a business through challenging times.  Even though they are not always at the best rates, they can usually provide a solution that will help avert disaster.  However the banks are particularly hard hit at the moment and are reviewing existing facilities as well as refusing new ones.  Imagine if your business overdraft facility was suddenly halved.  What effect would it have on your business?

In these challenging times, Invoice Financing is a cost effective and practical option to ensure that cash flow stays steady and keeps your business stable.  Invoice Financing allows you to unlock the value from your unpaid invoices, with an Invoice Financing firm taking on the risk of waiting for your client’s payment. 

In return, the firm make an upfront payment to you of an agreed percentage of the value of your outstanding invoices.  When your customer pays, you receive the balance of the monies due.  This means you release cash from invoices more quickly and can reinvest in your business with confidence.

Choosing Invoice Financing means that up to 90% of the value of an invoice can be released back to you within 24 hours of its issue.  Costs of the service can vary, but with seventy different providers in the market, there is a lot of competition for business. 

At Spiral, we can provide independent help and advice to search out the right deal for your business, as well as ensuring that the deal is structured correctly to meet both short and long term requirements.

For more information about Invoice Financing, and how it could work for your business, contact us at Spiral.