Positive cash flow the key to growth
03rd Aug 2010
by Barry Mills
A survey by the Asset Based Finance Association (ABFA) released in June 2010 showed that sales by client firms were up 8% in the first quarter of 2010, compared to the same period in 2009. This survey covers a wide range of businesses and sectors, with a high level of SMEs, and shows an impressive level of average growth in difficult economic times.
These figures illustrate a simple truth of business. Sort out your cash flow, and you are well on the road to growing your business. Far too many UK SMEs are cash constrained, and their management teams waste time and energy juggling money to keep afloat. However, most well-managed businesses, if they give their customers credit, can obtain invoice discounting or factoring finance. If the underlying business is sound, an invoice finance facility generally solves cash flow problems almost overnight. What's more, unlike other forms of finance, invoice finance expands naturally with the business, so the problem doesn't come back again after another growth period.
If your business has a significant level of debtors that are not financed, consider for a moment what a cash injection of say 90% of that debtor value could do for you. Free from the battle to survive, what could you do to grow sales and profitability?
If you'd like to find out whether you could benefit from a cash injection just complete our simple enquiry form or call us on 0844 875 3450