Cash flow funding solutions

Date: March 2016, Category: business growth, Author: Dan Lewis

Cash flow is critical for any business, and we often hear that ‘Cash is King’. There are lots of reasons for businesses to face cash flow issues, but that is the time when the business can grind to a halt. Even now, surprisingly, I speak with business owners who fail to understand that profit and cash flow are different but this can, and has, produced dire effects whereby businesses can secure a major contract but never get to fulfil it because they run out of cash and are forced out of business!

We have a number of clients who run printing businesses. Whilst business has been tough in a number of sectors, this is particularly true of printing. E-books, digital marketing and desk top publishing have all put a squeeze on printing businesses. Delivery costs have risen (as opposed to free email delivery), environmental concerns have grown and its clear to see making a profit from a printing business has become more challenging!


Combine this with the general challenges faced by all businesses around increased competition, a slow market and shortage of finance and its clear to see why so many printing businesses have faced serious difficulties.


Going back to the printing industry, the chances are your business has been forced to seek external finance. The likelihood is the bank wont increase the overdraft, or if they do their requests have made it almost impossible. At this point, we can help here at Business Funders. We have access to other lenders and can help you find that finance.


Options around crowd funding or peer-to-peer lending have become more apparent, and there are now specialist lenders who will re-finance plant and equipment purchases. Some of these lenders will only work through intermediaries, and that’s where we can help!


We can also help you to consider factoring or invoice discounting. Gone are the days when obtaining credit through these forms was too expensive or a last resort and instead they can offer a widely accepted form of financing your business. Again, we can help!


Private investors may also back your business, particularly if you appear profitable. However, if there are historical debts in the business, they may be put off, or at the very least require significant restructuring of the business to provide them with a clear exit strategy and a share of your profits.


If, finally, you have exhausted all these possible forms of finance, it may still be possible for you to buy the time to see you through the current crisis and allow your business to pick up. To do so, you need professional advice, and quickly. If used properly this may help you protect both your business and its employees!


As can be seen from the above, and the range of services we offer here at Business Funders, we really are the ‘go to’ brokers for you, whatever the state of your business. We can, and have, helped business access all the finance we have outlined here and are able to do so for you as well!


Get in touch, we are here to help!