Factoring to solve cashflow problems
Cash flow is one of the main reasons businesses fail. How to increase cash flow is the something every business tries to do. Even successful business, have experienced poor cash flow at some point.
What is cashflow?
Cash flow is the movement of cash into or out of a business. Being profitable does not necessarily mean being a business will have good cashflow. A shortage of cashflow can cause the largest business to fail.
Why is cashflow so important?
The saying 'cash is king' or 'profit is vanity and cashflow is sanity' are well known and essentially mean - Without cash a business is destined to fail. Cash is needed for the following business expenses and purchases.
- Inventory
- Sales Commissions
- Wages
- Maintenance
- Equipment leases
- Business rent or mortgage
- Research & Development Consulting Fees parties
- Taxes
What is cashflow factoring?
One of the most popular and common ways to alleviate business cashflow problems is to consider a cashflow factoring facility.
- Factoring is the process of selling accounts receivable to an investor rather than waiting to collect the money from the customer
- factoring deals exclusively with business-to-business transactions
- Factoring offers many cashflow benefits companies with high cash needs
- Factoring means business don't have wait for customers be paid which can take up to 120 days in some cases.
- Factoring is simple process that cab provide up to 85-90% of invoice values within 24-48 hours
- Factoring is a cash flow and business finance product used by businesses of all sizes and industrial sectors to increase cashflow.
- Factoring generates much needed cash, which can be used to compete with larger and more established businesses
- Factoring can solve cashflow problems fast and stop the unknown worry of when invoices will be paid.
The UK factoring helpline is specialist business cashflow and factoring broker in the UK who will find the right solution for your business cash flow problems. Call 0800 597 4757 for an assessment on whether factoring can improve your business cash flow issues.
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The UK Factoring & Invoice Discounting Helpline is a leading finance brokerage specialising in factoring and invoice discounting. We offer free, independent and impartial advice on business finance options. We have been helping businesses of all sizes and commercial sectors solve cashflow problems for more that 10 years. We have found factoring and invoice discounting facilities for many thousands of businesses and remain in contact with all our clients.