Understanding Your Cash Flow Finance Options

Organisations with tight cash flow should consider sourcing a fresh injection of working capital through business finance. Measures to optimise liquidity, such as forecasting and detailed cash management, can only go so far. They can also be resource-intensive, costing the business money.

Bringing in external cash flow finance supplies a number of benefits in addition to freeing up management time. It could permit prompt payments, generating discounts that offset some of the finance costs. It can reduce day-to-day operating pressures and it may even permit additional investment, boosting turnover.

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Cash Flow Finance Solutions

Here are some of the cash flow finance options available for overcoming cash flow challenges.

  • Invoice Factoring – This is popular with businesses with considerable amounts of capital tied up in a sales ledger. Factoring unlocks the majority of this cash allowing firms to receive up to 90% of the invoice value within a day or two of raising it, instead of having to wait up to 90 days for the customer to pay. It comes with the added benefit of the factor taking over management of credit control.
  • Invoice Discounting – This is very similar to factoring but the business continues to manage their own credit control. Both factoring and discounting are highly flexible and neither requires assets to be used for security
  • Fixed Term Loans – This delivers a lump-sum injection of cash that can be used to resolve short-term cash flow problems. Repayment schedules are fixed, meaning they are predictable but they can also become inflexible.
  • Asset Finance – Money is borrowed against the value of a business asset, such as machinery or stock. This is another approach to unlocking cash tied up in the business.
  • Bank Overdraft – The traditional remedy for cash flow challenges is this flexible approach to borrowing from the bank. However, such facilities usually require some form of security and can be withdrawn at short notice.

Business Finance Help from Touch Financial

We are the UK’s largest commercial finance broker which means thousands of UK organisations have come to us for advice. Our team of expert advisors has years of experience sourcing solutions that address the specific needs of particular businesses.

So whatever your cash flow issues might be we can probably help. We have carefully selected a panel of funding organisations that includes some of the UK’s largest banks. We take time to understand your needs before recommending finance options that we know, from experience, will give you what you need.

Because of our position we can also offer exclusive rates and packages from some funders, giving you excellent value for money.

Our service to you is entirely free of charge which means the only cost of speaking to us is the investment of your time. We can do this because our fees are paid by the funders and we have carefully structured our organisation to ensure our experts can give you advice that is completely impartial and independent.

So why not give us a call right now? Or get an estimate online of how much finance your business could unlock from its sales ledger.

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