As an SME it is likely that at some point you will experience uncertainty with your cash flow and financial status. These issues can impact any organisation resulting in both the inability to grow and expand as a business and the ability to secure future employees.
Putting confidence in not only yourself, but also your business is an integral part of success. As an established business loan brokers in Chelmsford, we know first-hand how difficult it can be to manage cash flow over a prolonged period of time.
Late Payments Are the Root Cause
Being owed any amount of money can be frustrating, let alone being owed thousands, even millions of pounds. The growth of SME’s in the UK has meant that the total figure for the amount being owed has risen significantly and now falls into the high millions. Receiving payment has proven to be more difficult than ever and dealing with this can become the ultimate hindrance.
Receiving a steady income through monthly payments is something that most small businesses will rely on. If these payments slowly begin to decrease and come to a halt, this can be a serious concern and ultimately, will limit the future success of their business. At Elite Business Funding we have several finance solutions that can remove this stress for you and your business such as Invoice factoring which can guarantee your payment.
When you combine late payments with low profits, this can prove detrimental for a business. The profits that they’re gaining from selling a service are being lost within the invoices that aren’t being paid. A low profit margin comes as a result of expending more money than is being brought into the business. When this occurs, owners will find it difficult to keep their business going as usual, and their cashflow status will be put into possible jeopardy.
Where cashflow is concerned, if a business fails to plan and budget their finances, the business may experience a breakdown in future certainty. The key to success involved is to ensure that all finances are accounted for and healthy cashflow is maintained over a prolonged period.
Growth of Your Business
No matter the business type or size, if you aren’t setting out to grow, then it’s more than likely that you’ll experience apprehension about the future. Development within an organisation comes as a result of serious hard-work, determination and fortitude. However, when people are failing to pay their invoices on time, the growth of the business becomes limited.
Cash flow allows a business to stay grounded, pay employees a wage and offer a resourceful service to a larger range of clients. If this fails to prove successful, the business will fail to thrive within their given industry and inhibit any possible progression.
Solving Cash Flow Issues
Studies in the UK have shown that if all invoices were repaid on time, then the stress caused by cashflow issues would be significantly reduced. Even if a business is doing well and revenue is increasing, if payments are late this will undoubtedly place strain on owners. Solving cashflow issues can be hard if you don’t seek external, professional support.
Here are some of the tips we recommend enlisting:
Cash Flow Loans: The Cash Flow Loans that we offer at Elite Business Funding are both short and long-term funding options which can offer a rapid boost in capital for your business. Once this loan has been arranged, the upfront investment will result in progressions to business and ensure that the strain of cashflow doesn’t develop even further.
Seeking Assistance: Commercial Finance Brokers like us, are guaranteed to offer support and assistance if your business is experiencing financial concern. They will educate you on all funding options, offering advice as to which would be the best, viable choice for you and your business.