To Small Van Courier providing deliveries in Ireland.
To Small fashion importer and exporter
Ask any business owner and he will tell you that his company's bottom line is one of the most important financial figures in his ledgers. The bottom line is essentially the gross expenses of the company subtracted from the gross revenues. The resulting number is called gross profit, or the bottom line. For some reason, the term “bottom line” has taken on an extra air of importance in the business world, probably because it sounds so final. When something filters down to the company’s bottom line, then it is seen as having a long-ranging effect over the entire organization. For the most part, this perception is true and it underscores the importance of making good financial business decisions.
When business owners talk about their company’s bottom line, they will often refer to elements as taking away or adding to the bottom line. Obviously, an entrepreneur wants more items that add to the bottom line, and he wants to reduce the elements that take away from his company’s end results. Each and every financial decision that a business owner makes affects his bottom line. From his product profit margin to the methods he uses to fund his ongoing operations, each pound that goes in and out of the company’s ledgers has a profound effect on the future of the entire organisation.
Invoice funding is a process that utilises your invoices as assets and then turns those assets into real cash. 1st Commercial Credit has been in the invoice funding industry for many, many years and we have developed programmes that will meet all of your company’s financial needs. But, more importantly, we can put together financial solutions that will not take away from your company’s bottom line. In the world of finance, if you are not taking away from the bottom line, then you must be adding to it. That is why so many business owners are discovering the financial power of invoice funding.
1st Commercial Credit offers cash advances against the face values of your approved invoices. We will work with you to establish the criteria for invoice approval and we will also disclose all of our fees right up front. When you have an invoice approved by 1st Commercial Credit, you will know how much you will be paying in fees for that invoice processing and how much of the invoice face value winds up in your corporate accounts. The fees are small, the process is efficient and the end result is a service that offers nothing but positive numbers for your company’s bottom line. Before you can understand the scope of just how helpful invoice funding is to your corporate ledgers, you need to understand how other forms of financing take money away from your company.
Let’s take a look at the impact that bank borrowing has on your company’s bottom line. When you borrow funds from the bank, you are introducing debt into your ledgers that you cannot initially cover. For example, if you borrow 10,000 pounds to cover payroll, then you have introduced 10,000 pounds in new debt that you currently cannot pay. You may have been able to meet payroll for this pay period, but you did so with money that you did not have. This means that you will have to take money out of future revenue and apply that money towards this new debt. This will mean that you will have 10,000 pounds less working capital to use on things like vendor invoices and building maintenance.
On top of adding the loan balance to your bottom line, you can also add recurring service fees and interest to your growing debt as well. If you decided to go with a bank line of credit, then the interest gets compounded regularly and can be inflated if you take on late fees. By the time you pay back the interest on your debt, you would have increased your debt significantly. That 10,000 pounds could be 15,000 or 18,000 pounds by the time you are done paying it back. This means that you not only added the loan amount to your bottom line, but you took on even more debt that you cannot account for from your cash flow to burden your company’s financial ledgers. All of this is the result of taking on one bank loan to meet your financing needs. You can multiply this out by however many loans you have to take out, in order to keep your company going. It becomes easy to see why bank borrowing is extremely dangerous for your bottom line.
When you get involved with an invoice funding programme through 1st Commercial Credit, you are using your company’s cash flow to pay those bills that you used to pay with bank loans. How are you doing it? Instead of allowing your outstanding invoices to go past due, 1st Commercial Credit is advancing you the funds for those invoices and supplying you with an ongoing cash flow. Your sales ledger becomes a way for you to schedule bill payments and make sure that you are always on time with the payroll deposit. You do not need to worry about bank lending because you are using the funds that your company has already generated to meet your economic needs.
Since your company has developed a reliable cash flow thanks to invoice funding, you are no longer obliged to consider bank borrowing to keep your operations going. Your bottom line will not be burdened by the loan balance, service charges and interest that come with borrowing funds from a lender. Instead of turning your bottom line into a balancing act between your slow cash flow and the loan balances you have with the bank, it becomes a strong indicator of a healthy business that shows a profit each and every year. Without that ongoing debt to drag your bottom line down, you are able to post a profit and move your company forward.
Before you consider contacting a bank to help you fund your next payroll deposit, take a long look at your sales ledger first. Do you see the stack of past due invoices that represent the cash flow you need to make payroll? 1st Commercial Credit can approve your account in only a few days. An approved account can receive advanced funds within 24 hours of an invoice approval. The invoice funding process is faster, easier and more reliable than any other form of funding that you can use. The best part is that invoice funding will not put the pressure on your bottom line that comes from other forms of corporate lending.
1st Commercial Credit has a simple, online application process that can get you approved on the same day you submit your application. Instead of wondering how your bank borrowing activity is going to affect your bottom line, you can eliminate those concerns from the equation completely by getting involved in an invoice funding plan. When you go to balance that bottom line at the end of the year, you will see what a huge difference invoice funding has made to your company. Instead of planning future growth projects with a bank, you can think about growing your company on your own terms and using the cash that your sales professionals have worked so hard to earn. Save your company’s bottom line and get involved in invoice funding today.