Even though the UK is still in the grip of a recession, there are still many businesses starting up and aiming to be a success in difficult times. While this is undoubtedly an exciting time, the majority of these businesses, despite the best efforts, will fail within the first year. The number one reason given for this is cash flow problems; if the money doesn’t come in to replenish stocks or pay staff then the wheels grind to a halt and the business sadly folds.
A big mistake new businesses make is that they think they have the knowledge to manage their finances themselves. Even if you are a whizz at maths, there is a lot more to the financial side than many realise, and it is often too late by the time they cotton on that this is an area they are hopelessly lacking enough knowledge and experience in. By far the most problematic area is invoicing, and unpaid invoices have been cited as the reason for many SMEs failing.
The problem is that many don’t realise that expert help is readily available in this area, and one of the best places to turn is Lloyds TSB. Their experts make sensible business financing much easier to understand, and they can point you in the right direction if you are struggling. They are the ideal choice for new businesses as their focus in on helping them avoid the pitfalls and achieve success even in tough economic climes.
Keeping your finances fluid with invoice factoring is a key element to business success and a chat with one of the invoice experts at Lloyds TSB will show you how to achieve leverage. This is a simply process which can help you to gain access to as much as 90% of your outstanding invoices with 24 hours or so, saving you having to wait weeks or even months for them to clear. This relieves the burden of cash flow problems by freeing up your working capital much quicker.
This in turn gives you financial flexibility and headroom, both vital components in the success of a business. Your sales and invoice ledger is managed for you with both professionalism and care, in much the same manner as if you had an in-house team managing your finances, but at a fraction of the cost. The factoring service you receive also gives you up to date credit information, will issue customer statements, allocate the cash that has been received and even undertake credit control.
Imagine sending an invoice and being able to get your hands on as much as 90% of the value within a day. The rest of the balance is released at a later date, minus the small service charge. This is far and away the most cost effective way of making sure your finances are in order at all times, and assures that you do not become one of the statistics and your business does not fail due to the cash flow problems caused by unpaid invoices.