There are plenty of steps a small business can take to keep its cash flow under control, however, there is only so much you can do to ensure customers pay on time. Many companies are often left short of cash when they need to purchase more stock, repair a vital piece of machinery or pay their own creditors on time, including their employees.
A bank overdraft is often used and may provide a useful buffer for some businesses, but it can only provide financial support up to a certain limit, which might not cover the value of late payments. Additionally, overdrafts can also be prohibitively expensive and take a long time to organise and this may not suit a business that needs a rapid and cost-effective solution to its cashflow problems.
In recent years, a number of new lenders have emerged, offering products that work as viable alternatives to overdrafts, including merchant credit (cash) advances, invoice finance and revolving credit facilities. There are also companies offering a modern take on the traditional bank loan, with faster turnaround times, flexible repayment terms and less stringent criteria.
If you would like more information or a free consultation on managing your cashflow please fill in the contact form with “cashflow” in the subject line or you can email or call us to discuss how we can help you find solutions to any issues you may have.