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Get expert advice on Cash Flow & help your business grow, today by calling 0800 597 4757 or apply online

What is cash flow?

Cash flow is the movement of cash into or out of a business

Why is cash flow important?

The level of cashflow can determine problems with a business’s liquidity. Being profitable does not necessarily mean being liquid. A company can fail because of a shortage of cashflow, even if the business is making a profit.

Cash flow is one of the most important aspects of running any business – large or small.

Avoid insolvency or business failure by getting cash flow advice early

According to The UK Insolvency Helpline Debt Advice Service Business Cash Flow Advice Team, a lack of cash flow or getting cash flow advice too late is one of the single most important reasons why many businesses fail.

If a business is insolvent then it is unable to pay its debts due to lack of cashflow then they risk the likelihood of being declared insolvent.

Methods a business can use on how to avoid a cash flow problem

  • Sell the receivables to a factor for instant cash. This is known as factoring or confidential invoice discounting.
  • Save on cashflow by negotiating good payment terms with suppliers
  • Try to offer a profit share programme to staff rather than pay them monthly bonuses or salaries
  • Consider sale and leaseback on large capital assets such as machinery, vehicles and buildings

Managing cash flow is vitally important in the smooth running, survival and success of a business. Please call 0800 597 4757 and speak to one of the cash flow advice team to see what options are available for your business.