To Small Van Courier providing deliveries in Ireland.
To Small fashion importer and exporter
Payroll is hardly an afterthought to a business owner, but it is only one part of many important financial matters that require regular attention. The problem for many business owners is that they try to keep payroll deposits on a schedule, but cash flow issues will often get in the way of paying employees. Business professionals often find themselves having to choose between paying employees or keeping critical vendors happy. Of course, the assumption is that vendor bills can be put off for another week so that payroll can be taken care of, but putting off invoices is what caused the cash flow problem in the first place.
You don’t want your customers paying you late, so you should return the favour and try not to pay your vendors late. A sales ledger that is filled with outstanding invoices is both a curse and a blessing. It is a curse because you never know just when your customers will pay their bills and when you will have the money. It is a blessing because a strong ledger represents a healthy business. If you could only guarantee that your customers will pay you on or before their invoice due dates, then you would never have to worry about payroll issues because you would always have the cash on hand to deposit into your payroll account.
The default move by most business professionals is to fill in the cash flow holes with bank borrowing. But a closer look at bank borrowing shows that it is an expensive and unpredictable way to fund something as important as your payroll. The last thing you want to do is put a multi-year bank loan on your bottom line just to meet one of your payroll deposits. You will still be paying interest on that loan long after those paycheques are cashed and that is no way to run a business. You need a solution that utilises your company’s financial strengths, instead of one that enhances your weaknesses.
The most reliable solution to your payroll issues is a factoring account with 1st Commercial Credit. When you utilise invoice discounting to meet your payroll obligations, you will have 1st Commercial Credit step in where your customers leave off. The normal process that your business uses is to generate an invoice and then wait for payment. But 1st Commercial Credit gets in the middle of that process and advances you cash your approved invoices and then you worry about collecting from your clients later. Instead of wondering when you will get the invoiced money that you need to sustain cash flow, 1st Commercial Credit will insure that you get your money on or before invoice due dates.
Invoice discounting is not something that will add financial burden to your company’s sales ledgers. It is one of the few financial services that does not add anything to your debt, while opening up the cash flow you need to meet your obligations. A factor such as 1st Commercial Credit is able to enhance your cash flow by utilising assets that banks would never use as collateral for bank funding. Those assets are your outstanding invoices. They may just be pieces of paper to the bank, but an experienced factor such as 1st Commercial Credit looks at them as assets which can be turned into collateral for cash advances. That is the essence of factoring and why it is able to be a sustainable cash flow source for your business.
Another important element of the invoice discounting service offered by 1st Commercial Credit is its seamless integration with the rest of your business services. Once your account is activated, the process for approving and processing invoices becomes automatic. We do not put any minimum criteria on our invoice financing service, which means that you can process as many invoices for as much money as you want each month. You can also process as few invoices for as little money as you want as well. You will never be hit with a service penalty or any kind of hidden charge for the amount of business you do with us on a monthly basis. We handle each invoice individually and give your cash flow the attention it deserves.
How many times have you sat at your desk and had to determine which vendor invoices get paid late just so you can make payroll for a given pay period? If you have done it once, and most business owners are faced with this issue on a regular basis, then you have done it too often. You can try to create invoice payment policies that put strict penalties on paying late, but that will cost you customers. You could put incentives on invoices for customers who pay early, but that will cost you money. Instead of trying to balance your sales ledgers with the numbers stacked against you, it is time to put the balance back in your favour with invoice discounting.
1st Commercial Credit will use your flow of invoiced sales as the financial foundation for a business line of credit that you can use to meet payroll without an issue. As your company grows and your invoiced sales start to increase, 1st Commercial Credit will use that increase in revenue to give you a larger line of credit. That means that you will be able to expand your staff as your customer demands increase. When you have a solid cash position at all times, it becomes much easier to make the decisions that will bring your business to the next level. If you are always faced with the possibility of having to take on more bank borrowing debt just to grow, then you may decide to put off your success until a later date. That is not how you stay competitive in this new global marketplace.
Payroll is something that takes priority over almost everything else in your company’s finances. Something that important deserves to be monitored and attended to on a regular basis. Every business owner would love to see cash flow take care of payroll every pay period, but it doesn’t always work out that way. Past due invoices create cash flow issues that often force business owners to have to put off paying vendor bills just to make payroll. The end result is angry vendors and damage to the company’s credit rating.
The solution is an invoice discounting arrangement from 1st Commercial Credit. Without introducing any new debt into your company’s bottom line, we can provide you with the cash flow you need to meet your payroll obligations. We turn your outstanding invoices into cash, charge a very small fee per invoice and provide you with a recurring business line of credit that can go towards meeting payroll and paying for any of your other company’s bills. We can also help you to plan the future growth of your company by supplying you with a stable financial foundation which would prevent the need for bank borrowing to insure your company’s future.