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Small business owners are constantly looking for ways to improve the effectiveness of their organisations. Everyone knows that efficiency generates profits, which is why so many people are starting to get on the environmentally-friendly bandwagon. As soon as business owners realised that they could save money by using recycled materials, they switched to this planet-saving option. It is great that entrepreneurs are willing to make a change that will help the environment, but most entrepreneurs are looking for efficiency within their own organisation that will increase profits by lowering costs. In some cases, it can be easy to spot areas where efficiency can be increased. But it is when you dig deep that you find the treasures which will make your company successful.
Your sales ledger is the ongoing and comprehensive story of your company’s financial status. If you want to find out whether or not your company has the cash on hand necessary to meet your next payroll obligation, then you would just need to look at your sales ledger to find out. As a reporting tool, a sales ledger can tell us a great deal about how well a company is being run and how much money a company really has available. But most business owners do not realise that their sales ledger can also become more efficient and utilised as a very powerful financial tool.
When you look at your sales ledger, you are able to compare the invoices you have outstanding with the ones that have already been paid. A close look at your ledger will also reveal just how many of those outstanding invoices are past due, and that is where inefficiency creeps into your financial reporting. A preliminary scan of your invoicing shows that your sales department is working hard and generating the kind of invoiced sales that you need to meet all of your current obligations and offer funding for initial growth projects that point your company towards the future. But the actual cash flow portion of your sales ledger indicates the disconnect between what your customers owe you and what you are actually being paid.
1st Commercial Credit is an invoice discounting company that can correct the inefficiencies in your sales ledger and help you to get the kind of cash flow you need immediately. This is not a financial programme that takes weeks to implement and months to show results, this is an extremely streamlined financial plan that you can use by the end of the week to improve your cash situation. Once you have your approved application, it takes five business days or less to set up your account. You only need to fill out one application to get a continuous flow of cash from your invoices through in an invoice discounting plan with 1st Commercial Credit.
If your business runs like most in the UK, you and your staff work hard to generate invoiced sales and then rely on that potential revenue to run the organisation. Most of your future growth plans are tied up in that cash flow, which should come from the work that you do with your clients. Unfortunately, there is always a contingency of clients who allow their invoices to go 30, 60 and even 90 days past due. These past due invoices slow down your cash flow and create an inefficiency in your business model that forces you to look for expensive financial options. You may wind up taking out a loan to meet payroll for this pay period, which adds debt to your bottom line and gives you a monthly loan payment to make for the next several years.
All of these financial issues surface because of the inefficient way that you are handling your sales ledger. Instead of relying on your clients to pay their bills on time, you should be working with 1st Commercial Credit to make sales ledger inefficiencies a thing of the past. 1st Commercial Credit looks at all of your outstanding invoices as assets. Even your past due invoices have value that is represented by the invoiced amounts. Those assets can be turned in to cash on a regular basis through a 1st Commercial Credit invoice discounting programme. Once you institute 1st Commercial Credit as a valued financial partner in your business, you can say goodbye to those past due invoices that have haunted you for years.
The list of things that your company can accomplish with a consistent and reliable cash flow is impressive. For one thing, you would be able to meet your payroll obligations without having to take out an interest-bearing loan from a bank. Your payroll payments would be done with your existing cash and would cease to become a long-term debt. Just the ability to meet payroll without utilising some sort of bank funding goes a long way towards reducing your company’s debt and freeing up working capital for so many other projects.
When you improve the efficiency of your sales ledger through invoice discounting, you can pay your vendors on time and improve your company credit profile. A strong cash flow means that you will have the funds you need on hand to finance a new product launch or expand your staff without requiring a commercial lender. You can plan the growth of your company knowing that you will only need a commercial lender for the truly large projects. Your company can fund the smaller activities on its own, which means that you will not be taking on a steady stream of debt as your company grows.
Your sales ledger is more than just a report that shows you the status of your invoiced sales. It can also be an indicator of the financial strength of your organisation. But you are only able to exploit that strength when you are collecting on your invoices on or before their due dates. Past due invoices become the anchor that weighs down your sales ledgers and turns them into an accounting of the inefficiencies in your company’s economic status. An invoice discounting programme through 1st Commercial Credit will remove those inefficiencies and make your sales ledgers the kinds of reports you want to read each and every morning.
The positive effects of a strong sales ledger can be felt throughout the company. When your sales department knows that their hard work is helping to grow the company, then they feel inspired to work harder. When your research and development group is on the verge of a breakthrough, they can move forward knowing that the company has the cash on hand to make sure that the new product sees the light of day. Instead of dreading the idea of looking at another list of past due invoices, you will have the pleasure of counting your money as it is deposited directly into your company bank account.
1st Commercial Credit has the programmes and experience you need to get maximum efficiency out of your sales ledgers. Instead of watching those past due invoices drag your company deeper into debt, you could be looking at an enhanced cash flow that provides your company the financial foundation it needs to reach all of its future goals. Contact 1st Commercial Credit today and find out just how easy it is to turn your sales ledgers into sustainable cash flow reports with a customized invoice discounting plan.