Business Library

Growing Your Business Potential

Traditional funding, such as bank overdrafts and loans, are often too inflexible to cope with the cash flow demands of a growing business. The need to renegotiate limits as these are quickly exceeded can tie up time, and often attract a fee for the adjustment. This can be avoided by using a factoring facility available funds grow in line with your sales.

Often businesses can become a victim of their own success. Growing sales mean growing bills to suppliers, which may lead to restrictions in extending more credit. In this instance the ability to call off funds against the sales ledger can mean resources continue to be at hand. In addition, it may be possible to secure lucrative supplier discounts for early settlement, or for bulk purchase.

Business management can be a juggling act, managing staff, deliveries, negotiating with new and existing customers all of which take management time. This precious time can be increased through the provision of professional credit management. Statements and reminder notices are sent to your customers as part of a factoring facility, in a format agreed with you at the outset.

New customers will probably play a large part in increasing your turnover. Without knowledge of their credit standing, this could turn the excitement of a new order into the disappointment of a bad debt. One of our Factoring Providers, Alex Lawrie Factors, have access to a database of around 450,000 businesses. This information can be shared ensuring that a sound decision can be made whether or not to extend credit to a new trading partner, or to increase credit to an existing customer all part of the service.

In capital intensive industries there is often a need to continually renew plant and equipment. Finding deposits for such purchases can be a substantial cash drain. Once again factoring can assist in making sure funds are easily available to meet these sporadic requirements.

The quickest route for growth is often by acquiring other parts of the supply chain, or by buying the competition. Again, a Factor can also help release money against the target company's sales ledger to help with the purchase, and to assist ongoing working capital requirements.

If you would like a no obligation quote for a Factoring service for YOUR business click here. Alternatively call us on 0845 602 3165 and we'll work with you to find the best solution for your needs. Please quote ref al/fin/001.

This is a guide. It may be helpful for you to also talk to a professional in Factoring services.