It can be extremely stressful to be a business owner and to find yourself in a situation where your business is running low on cash. Business is not always booming, but that does not mean that you can relax and not worry about it, especially when you have financial obligations. When you find yourself facing a lull in business you need cash flow solutions that can help you to get through the slow times.
You may be surprised to discover that the problem is a lot easier to solve than you think. There are several solutions that can be used to fill in the cash void until your business starts generate more cash. Invoice financing and invoice factoring are two cash flow solutions. You can sell to other businesses using credit terms and the invoice finance can be used to increase your cash flow. Invoice financing means you do not have to wait to get paid because you get the cash as soon as you have rendered an invoice. If all of your outstanding invoices were paid now it would make a huge difference to your business’ bottom line.
Invoice factoring is another option for cash flow solutions. You sell goods or services to your customer and provide them with an invoice and a copy of the invoice is sent to a factoring funder. The factoring funder will pay you 90% of the invoice immediately and then proceeds to collect the invoice from the customer. When the invoice is fully paid, you get the remaining 10% of the invoice after they have collected their fee. Another version of this is invoice discounting where the business remains in control of the credit control so that customers do not know that invoice finance is being utilised by the business.
Asset finance is one way to raise funds without increasing your debt load. This is a way to take advantage of the value of assets that are already owned by your business including vehicles, machinery, computers and stock. All of these items have a value and you can access that value through asset finance. When you raise money through asset finance you can have access to the value of your assets while retaining them and continuing to work in your business. Having access to these funds can mean the difference between success and a struggle.
Another asset that you may not have considered as part of several cash flow solutions is sales invoices. Many assets of your business may not be tangible to you including unpaid invoices and patents, but these items do have a certain value. These items can be converted to cash so that you have more money to work with. Through invoice factoring and invoice discounting it is possible to stimulate growth because your business will have access to more cash which will allow it the freedom to invest in things that can help it to grow including new products, a new location or employees.
If your business needs cash flow solutions then you need to find a suitable commercial finance lender that can assist you with your needs. As a business owner you need to have access to cash to get further ahead. Asset finance is a solution to your cash needs and can help your business to continue operations even when your think the outlook is bleak.
Every month Business Recovery help businesses improve their cash flow. Request a quote to find out how much extra cash you could raise.