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Invoice Finance for Retail

Starting up a retail business, or keeping your existing one afloat, comes with challenges.

Having the means to invest in marketing campaigns or repairs and refurbishments of your premises is vital for the growth and success of your company. Unsteady or uncertain cash flow can impact your ability to proceed with these ambitions, and can even mean that paying in-house staff or other bills, such as VAT, on time is difficult. This is where invoice finance might be able to help

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Retailers who experience seasonal peaks can often find that they lack the disposable cash to refill stock in time for these busy periods, which means not being able to supply for the demand when the time comes.

There are many individual reasons for these cash flow problems, unique to each retailer, but there are also a few that face the industry as a whole.

Retailers who experience seasonal peaks can often find that they lack the disposable cash to refill stock in time for these busy periods, which means not being able to supply for the demand when the time comes.

There are many individual reasons for these cash flow problems, unique to each retailer, but there are also a few that face the industry as a whole.

 

Financial challenges for retailers

The rivalry of online retail

The rise in popularity of online shopping has contributed to a decline in shoppers making purchases in the traditional way on the high street. With less foot traffic, many retailers find it difficult to continue to keep up, despite having whatever products might be in demand.

High street decline

It’s no secret that the high street shop has been at risk in recent years. Many of the big names in retail such as Debenhams, Karen Millen and House of Fraser have faced financial challenges in the last few years that have meant closing down stores.

Rising rent costs

Coupled with the above, keeping up with the rent on retail premises can be a challenge. Costs for rent are on the rise as a general rule, and when renting valuable space for retail the falling footfall on the high street can really present some hardship in keeping rent payments balanced with actual income.

Expense of importing/exporting overseas

At time of writing, the uncertainty surrounding the political climate in the UK means that costs for importing and exporting internationally, particularly within Europe, are unsteady. Costs for importing are likely to rise and supplier routes may need to change, both of which will be expensive and tricky, particularly for smaller sized businesses.

Whether you need more cash flow to purchase specialised equipment, or to promptly pay employees, there are many options out there to help you find the funds. However, if you’re a small business or don’t have the best credit history (or none at all) then you may struggle to qualify for a traditional bank loan to improve your cash flow.

But don’t worry! The right invoice financing agreement may be able to take the pressure off.

 

Invoice financing for retail businesses

Many companies now use invoice financing as a method to ease their cash flow issues. As the UK’s leading invoice finance broker, we can put you in touch with the best provider for your business. By entering into the right arrangement, you could be eligible to receive an advance of up to 100% of your due payments and eliminate worries about long payment terms altogether. Get in touch to explore your options in more detail, including the various invoice factoring, confidential invoice discounting and spot factoring solutions available.

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