To Small Van Courier providing deliveries in Ireland.
To Small fashion importer and exporter
What is cash flow? If you run a business, then you may think that you can answer that question easily. But the reality is that most business owners do not have an appreciation for everything that goes into creating a reliable cash flow. They also do not understand just how important a liquid and reliable cash position is to their businesses. You may think that you know cash flow because you spend each day pouring over your sales ledgers and you have a good grasp of your company’s aging reports. But until you can appreciate the dynamics of how cash affects the operation of your company, then you are not doing everything you can to run your company efficiently and in a profitable manner.
In order to really understand cash flow, you need to break it down into its essential elements and examine each one closely. A company that offers factoring services, such as 1st Commercial Credit, can offer guidance on how to improve your cash position and get the most out of your company’s sales. Every smart business owner in the UK knows that it is important to learn something new as often as possible. When that something new offers you a chance to improve the financial stability of your organisation, then it can wind up being very valuable information for your company’s future.
As part of a study of cash flow, it helps to have comprehensive information on financial services that can improve and enhance your company’s cash position. 1st Commercial Credit is a factor with an international reach. We have financial affiliates all over the world, and that allows us to distribute funds in up to 17 different types of currencies. That kind of versatility, backed by billions of dollars in available resources, is why 1st Commercial Credit is the premier factor for small to medium sized businesses. With these resources at our disposal, and the experience that comes with years of helping clients all over the UK, we are able to devise a custom factoring plan that will solve your cash flow issues.
1st Commercial Credit has custom services that satisfy every essential element of cash flow. We can create a programme that process your corporate invoices quickly and gets cash into your accounts within 24 hours of invoice approval. The approval process can take only minutes, which plays into the need for a sustainable cash flow with recurring cash reserves. We do not charge any set-up fees and we have no surprise fees either. After approving your account, we disclose all of the fees we will ever charge your company for our services. This efficiency is also a very important part of creating a stable cash position for your organisation.
When you look at your sales ledgers and your aging reports, you notice right away that there is a huge inconsistency among your clients. Some clients pay their invoices early, others pay their invoices on the due dates, while the vast majority allow their invoices to go past due. To make matters worse, the past due invoices are also wildly inconsistent as well. Some customers pay their invoices 15 days late, while others will let their invoices go 80 or 90 days late before finally submitting payment. It can get even more frustrating when past due clients send in only partial payments towards their invoice amounts. This inconsistency makes it almost impossible to keep accurate books and it also drives many business owners towards bank borrowing.
A factor such as 1st Commercial Credit eliminates this inconsistency by advancing you cash based on the face values of your invoices on or before their due dates. With this kind of service on your side, you can put together vendor payment schedules that will make your vendors happy and preserve your company’s credit score. You can also work with your payroll firm to make sure that payroll deposits are always done on time and in full. When you are able to schedule financial arrangements because you have confidence in the consistency of your cash flow, then you are able to focus your resources on more important, and more profitable, corporate projects.
There are few things more frustrating in the corporate world than working hard to increase sales and then realising that you do not have the cash flow necessary to fill the increase in orders. This is why so many business owners take out loans when their companies start to see a certain level of success. While the ability to forecast a growth in sales and use that forecast to secure bank funding is an important and admirable trait for a business owner, it is also misguided. Your cash flow needs to be flexible and keep pace with the growth of your company if you want to avoid turning new orders away because you do not have the financial resources to fill those orders.
1st Commercial Credit understands the delicate relationship between corporate growth and cash flow. That is why our invoice funding programmes are flexible and able to keep pace with the success of your company. Instead of turning to an expensive bank loan to add workers when invoiced sales take off, you will be able to utilise your increase in revenue to procure all of the resources you will need to meet the demand. Once again, having a flexible cash flow means that you can make the important business decisions without having to worry about financing. You can determine what kind of new resources you need to maintain your company’s new success without having to wonder how you will pay for those resources. The money you need will be on hand and in your bank account, thanks to your factoring plan with 1st Commercial Credit.
It is extremely difficult to develop a sustained cash flow through bank borrowingfor many reasons. Bank borrowing has pre-determined limits to how much you can borrow, and every dollar a bank lends you comes with service charges and interest attached to it. Bank borrowing winds up padding your debt and making things very difficult for your corporate bottom line. In the end, a bank can do much more harm to your cash flow than good, which is why it is best to keep bank funding out of the equation when it comes to your company’s ongoing business obligations.
Factoring has all of the essential elements required for good cash flow and a factoring plan from 1st Commercial Credit can provide you with the sustained business line of credit you need to make your company efficient and profitable. If the idea of factoring is new to you, then give the financial professionals at 1st Commercial Credit a call and ask as many questions as you would like. You can sign up for an account and then decide to never use it, if you so choose. You only pay for 1st Commercial Credit’s services when you actually use them. 1st Commercial Credit provides your company with the tools it needs to develop a reliable cash flow that will help you to find success. We will help your company to focus its resources on growth, instead of watching your financial resources get drained by interest and service charges.