New Year, New Funding Requirements?
Now we have moved into 2022, many businesses will be looking to review their strategy for the year ahead. One thing many will be focusing on is ways to grow their business, and below we discuss how Invoice Finance could help with some of these new scenarios.
One way many businesses look to grow is by bringing on new customers. This will help increase the amount of turnover the business is doing. One problem new customers can bring is longer payment terms. If you are used to getting 30 day payment terms, but a new customers pays strictly on 60 days, this may affect your cash flow. The longer terms may make it harder to pay wages, supplier payments and any other overheads the business may have.
Selective Invoice Finance could help in this case as you are able to pick and choose invoices you would like to fund. This will enable you to exclude the well-paying, trusted customers you have previously dealt with, and simply raise funds from the new customers invoicing. This will help relieve any cash flow worries on new customers that pay on longer terms.
Many businesses will look to take on new and larger projects as a way of growing the business, whether with new or existing customers. When taking on a larger project, businesses will more than likely have a larger outlay of cost upfront. Even if the project is with a trusted customer, a larger initial cost may lead to pressure being put on a business’s cash flow.
In this case, Spot Invoice Finance could be ideal for the business. This product simply allows you to fund invoices as and when you need them funded. This mean that if you have a specific project for a trusted customer, you can fund the invoices for that project, and then go back to normal once your cash flow is back on track.