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Cash flow is a discussion topic that is near and dear to the hearts of business owners throughout the UK. Without cash flow, a company will find it difficult to accomplish any of its short-term or long-term goals. The thing that most people do not understand is the delicate nature of cash flow. A company’s cash position relies on several factors both internally and externally. If an entrepreneur wants to be able to create a healthy flow of useable revenue for his company, then he needs to understand what spurs cash flow, what slows it and what can be done to enhance its effectiveness.

When you understand the dynamics of cash flow, then you can take the necessary steps to stabilize it. The most immediate effect of a stable sales ledger is the ability to schedule bill payments and know that you will not have to make any changes to your bill paying habits that could jeopardize your relationships with vendors. You can also schedule payroll deposits well in advance and remove the stress of wondering how or when you will make your payroll payments. When it comes to creating stability in an organization, nothing works better than a consistent and reliable payroll situation. With the right amount of cash on hand, you will be able to pay your staff and maintain productivity.

1st Commercial Credit Is Your Cash Flow Stabilizer

When you want to bring consistency to your sales ledger and your aging report, then you need a reliable system that turns invoices into cash. In a perfect world, you would be able to rely on your clients to pay their bills on time and that would provide you with all of the money you need to run and grow your business. But we do not live in a perfect world, which is why factoring was created. Invoice factoring is the process of turning outstanding invoices into useable income on a consistent basis. 1st Commercial Credit is the premier factor in the world and has been offering assistance to UK businesses for a very long time.

Invoice financing works in a very direct manner that ultimately becomes a part of the way your company operates. When your accounting group generates an invoice, that invoice is processed and approved by 1st Commercial Credit. Depending on the custom invoice discounting programme that 1st Commercial Credit has put into place for your company, you will have the cash from that invoice advanced directly into your company bank account on or before the invoice due date. There is a small processing fee for each invoice, and then the remaining balance is transferred directly to your company. You never have to worry about past due invoices and you never have to wrestle with the recurring fees that banks charge. 1st Commercial Credit stabilizes your company’s financial situation and creates a reliable cash position.

Invoice Discounting Services Are More Efficient Than Bank Lending

When it comes to corporate finances, stability can often be a relative term. Many business professionals would say that, as long as the company bills are paid, then everything is stable. But this narrow view of corporate finance is often what gets many businesses in trouble. Instead of looking at the bigger picture and attending to the company’s economic needs, a business owner will use bank borrowing to fill in gaps in cash flow and that can do much more harm than good. Banks charge recurring finance fees and interest that will weigh heavily on your company’s bottom line. Over time, your habit of turning to bank borrowing will destabilize your company’s finances and could eventually put you out of business.

Invoice funding is a persistent and reliable method of finance that grows along with your company. It can be frustrating to see your sales staff generating more revenue, but then your aging report indicates that you do not have access to that revenue because of past due invoices. With a factoring programme through 1st Commercial Credit, you will be able to increase your business line of credit as your invoiced sales start to climb. When your sales go up, the financial responsibility your company faces to fill those orders goes up as well. A factoring programme will make sure that you are able to use the increase in sales revenue to satisfy orders and avoid getting caught in the bank borrowing trap.

Yes, Invoice Factoring Stabilizes Cash Flow

At this point, the discussion is not about whether factoring stabilizes your company’s financial situation. It is more about determining how 1st Commercial Credit can become a valued financial partner to your organisation and what benefits you stand to gain from taking on a factoring relationship. A reliable factoring plan through a quality factor such as 1st Commercial Credit is the one tool your company needs to create financial stability. But there are several other benefits that 1st Commercial Credit offers which will allow your company the economic autonomy it needs to grow.

1st Commercial Credit becomes a valued financial partner to your business by offering vital services with no hidden fees. When you fill out your online application, we will approve the application the same day you submit it. We review your application information and come up with an invoice discounting programmefor your organisation. We present a plan that outlines all of the fees you will pay, including the fact that we do not charge a set-up fee. Once your account is approved and in place, we will be able to process as many invoices as you need. We do not limit you to a per month or per invoice minimum amount, as many banks would do. Our concern is making sure that your business is getting the cash flow it needs and we know that we cannot do that if we put limitations on your account.

Make The Call And Get Started Today

Business professionals tend to put off the things that are not part of their regular routine because, in all honesty, it is difficult enough just to get the things done that need to get done. But if you can significantly improve the financial health of your company by looking into an invoice factoring programme with 1st Commercial Credit, then it is something that you have to make time for. Instead of falling deeper and deeper into the economic pit created by interest debt and monthly bank service charges, you could grab complete control of your company’s finances by putting a factoring plan in place that automatically creates the cash flow you need on a regular basis.

1st Commercial Credit has the financial strength to conduct business in up to 17 different currencies. We have a network of financial affiliates that allows us to fund your domestic and international transactions. We also have years of experience working within your industry. We understand how important a stabilized cash flow is to your company’s future success and we have the tools you need to succeed. We encourage you to give us a call and talk to one of our financial experts. If you want to get started with your factoring plan right away, then fill out our online form and we will get back to you immediately. Factoring can not only stabilize your company’s cash flow, it can also insure your company’s future success. Get started today and see just how far your company can go when it has a healthy bottom line.