As a small business owner, you will almost certainly face cash flow and financial instability at some point. These problems can negatively impact any business, restricting its ability to grow, expand, and retain future employees.
Having faith in not only yourself but also your business is crucial to your success. We know how difficult it can be to handle cash flow over a long period as an established commercial finance brokerage in Canary Wharf.
The Root Cause Is Late Payments
It can be aggravating to owe any sum of money, let alone thousands or millions of pounds. The growth of SMEs in the UK has resulted in a substantial increase in the overall amount owed, which now stands in the millions. Receiving payment has become more complex than ever before, and coping with it can be a significant roadblock.
Many small businesses would depend on receiving a consistent income by monthly payments. If these payments start to fall behind or stop altogether, it’s a significant risk that could jeopardise their business’s potential success. We have many funding options at Funding11 that will alleviate this stress for you and your business, including invoice financing, which will guarantee your payment.
Profits are Low
When late payments are combined with low earnings, it can be disastrous for a company. The money they make from delivering a service is being lost due to unpaid invoices. The consequence of spending more money than is brought into the business is an insufficient profit margin. When this happens, owners may find it challenging to keep their company running normally, and the business will jeopardise their cash flow situation.
When it comes to cash flow, if a business fails to prepare and budget its finances, its potential certainty will be jeopardised. The secret to success here is to make sure that all of your finances are in order and that you have a stable cash flow for a long time.
Your Organisation’s Growth
If you aren’t planning to develop your company, you are more than likely to be concerned about the future regardless of its type or size. A company’s development is the product of a lot of hard work, commitment, and perseverance. However, when customers refuse to pay their invoices on time, the company’s growth is stifled.
Cash flow helps a company to remain afloat, pay workers a salary, and provide a more comprehensive service to a wider variety of customers. If this fails to work, the company will struggle to succeed in their current market and be unable to advance.
Getting Rid of Cash Flow Problems
According to studies conducted in the United Kingdom, if all invoices were paid on time, the burden caused by cashflow problems would be greatly reduced. Even if a company is doing well and income is rising, late payments will put the owners under a lot of stress. If you don’t seek outside, competent help, resolving cash flow problems can be difficult.
Here is a suggestion we recommend. The Cash Flow Loans that we provide at Funding11 is a short and long-term funding solution that can provide a fast boost in money. Once this loan has been negotiated, the upfront investment will result in company advancements and ensure that the cash flow pressure does not worsen.
If your company is having financial difficulties, a commercial finance brokerage like Funding11 will support and assist. Visit the Funding11 website to confirm your eligibility in 60 seconds, apply online, or call us now at +44(0)020 3475 9299 to speak with a specialist finance consultant.