Cash flow is the maker and breaker of any business. You can have all the massive annual contracts and future projections in the world, but if your current cashflow doesn’t stack up, your business is doomed.
As such, it might not be surprising to know that cash flow is becoming an increasingly important sector of business finance. Unlike major projects like property purchases or refinancing of existing debt, financing for cashflow involves using finance to improve your existing services, rather than moving into new ground. Some recent research suggests that nearly 30% of SMEs may be taking this route and looking to refit their equipment or acquire other items that they might need to improve their service.
Whilst we still see many clients who are looking to expand their premises or purchase new properties entirely, we can see why cashflow improvements might be a more appealing option to many businesses. A family-run business that’s owned the property they’re based on for generations is unlikely to need to move to new premises. However, the business could easily accommodate further expansion and improve their operations in the existing location, or perhaps may need to cover their cashflow until existing invoices come in and allow them to improve themselves.
You can use finance for myriad different purposes – it’s interesting to see cashflow management or improvements becoming such a major thing!