Whether your business is shooting for the stars or just starting out, one thing is for sure, cash flow can always be improved. Increased cash flow can be the answer to expanding your business or ensuring that your business is financially stable. There are many offers out there for improving your cash flow, but which one is the best for you?
An unpaid invoice can cause a company financial difficulties. Cash keeps businesses moving forward so when you hit an issue like an unpaid invoice it can have disastrous effects on your company’s growth and development. In this situation there are solutions available that will release the cash in your unpaid invoices.
Factoring allows businesses to receive cash upon raising invoice normally for around 85% of the invoice value. The great thing about Factoring is that the funds are available usually within 24 hours, so there is no long waiting period and your business can move ahead almost instantly.
To be suitable for this solution you must be in the business to business market, with a minimum turnover of around £25,000 plus VAT, even the smallest of businesses will be considered.
For more Information on this service visit www.touchfinancial.co.uk or alternatively call 0845 388 9725
Similar to factoring Invoice discounting also releases funds from tied up invoice however the process is slightly different. With Invoice discounting the major differences is that your customers have no idea you are using the service it is completely confidential, in addition it is still your responsibility to collect the debt.
In order to be eligible for this service you must be in the business to business market and generally speaking your turnover should be no less than £300,000. Also you must have the capability to chase up debts and have strong in house management skills and procedures.For more information on this service visit www.touchfinancial.co.uk or alternatively call on 0845 388 9725.Each of these solutions offer businesses the opportunity to expand and grow. For a more hassle free approach Factoring is clearly the one for you and is generally favoured by smaller businesses. On the other hand larger businesses tend to favour invoice discounting due to its discretionary nature. Each has their own unique advantages for more information on this, click the link. Invoice Factoring vs Invoice Discounting.