Christmas Cashflow Keeps Santa Ho-Ho-Happy

However, for most business owners, that magic often runs out come the end of the year, when the festive season often sees our cashflow dry up.

For many, the seasonal holiday high means demand is up, yet this results in expensive increased outgoings – additional stock purchases, extra staffing costs, utility bills soaring, staff bonuses etc. To make matters worse, whilst you’re busy working around the clock, many of your customers work reduced hours over the holidays, meaning your invoices are paid even later than usual.

And for those businesses that suffer from a seasonal yuletide low over the festive season, December and January can be a long and hard winter.

It’s vital therefore, that invoices during the end of the year are paid on time. However, did you know that over 70% of all invoices were paid late last year? December can be even later than usual – your customer’s could shut down for the holidays, some have December year-ends, others bring forward their payment process dates that results in December invoices not being processed until end of January at the earliest.

That’s why, even now, it’s not too late to look to invoice finance – also referred to as invoice factoring – to see you through the seasonal highs and lows of Christmas. Quite possibly, it’s the best Christmas present you can give your business!

Invoice finance is flexible, fast and guarantees to keep your cashflow flowing, not freezing over.

Invoice finance isn’t lending. You aren’t taking out a loan. Instead, your invoice factoring provider is simply advancing you monies that you are owed.

What this means is that you are given/advanced up to 90% of the value of each invoice you issue – all within 24hours! The balance is paid to you, minus fees, when the invoice is paid.

The only assets you put up are the invoice themselves, as they are all that’s needed – your invoices are proof enough that you are owed money from your customers – so there’s no risk to you about losing machinery, stock or other such indispensible assets essential to running your business.

The factoring providers don’t look at your credit rating; they are interested in the credit rating of your customers – which actually serves to protect you in the long run. What’s more, the factoring provider will also carry out all the administration aspects of managing your invoices for you, as if they were your own in-house credit control department.

So, whether your business enjoys a seasonal holiday high or suffers from a yuletide low during the festive season, or talk to us about arranging the UK’s most popular form of alternative finance – invoice factoring: invoice finance, invoice discounting and selective invoice finance.

Call us on 07917 871832 or email us on info@cashflowbridge.co.uk