Factoring and Invoice Discounting Helpline

Businesses need cash in order to grow, the growth can be through investment in equipment, staff or premises or it can be through a marketing campaign to increase the awareness of your products or services. Even if growth will be organic the business will still need a robust working capital solution in order to get turnover to increase.

Growing your business can be very exciting; however choosing the right type of funding to achieve your goals can be difficult and stressful, however we can help you find the right funding options for you.

In order to grow you will need sound financial management such as budgeting and cash flow forecasting. You will need this in order to plan for your expansion and to ensure that as the financial burdens of your business get larger you can remain in control of your financial planning.

When small businesses enter into a growth phase initially there will be a negative impact on cash flow, this will be because increased suppliers, equipment and staff are all needed prior to the profit being made. Initially these extra suppliers and staff will need to be paid and there will be a gap in the funding in between making the payments out and getting the money to flow in.

Funding options for growth

There are a variety of business finance options, however first it is important for the business to have a clear understanding of its needs based on the cash flow forecast for the coming months. The business also needs to understand the costs and benefits associated with gaining the additional working capital and have an understanding of the different solutions that exist.

It is important to get the right funding options for growth with the right level of flexibility and cost. Flexibility is particularly important as business conditions change quickly and growth is often based on being able to respond quickly, therefore no small business wants to be tied into a long term or medium term funding solution. You need your funding to develop with you and not hold you back.

Many traditional forms of funding and financing can constrain working capital and growth, whereas alternative forms of financing such as Factoring are more adaptable because Factoring is linked directly to turnover, therefore the more successful your business is the more potential there is to increase your borrowing and therefore continue to grow your business.

For further information about business finance please contact our advice team on 0800 597 4757 or apply online using the form opposite.