Invoice finance can help you get through slow business periods.
Each business sector has its own unique seasonality pattern. For construction companies, the work can slow down in the winter as the weather gets colder and the days get shorter. On the other hand, a spirits company with a nice, warming rum brand in its portfolio might find winter a busy time but have a drop in sales in the summer.
These seasonal peaks and troughs are to be expected – it’s part of running a business.
The quiet periods can be especially difficult, as staff, suppliers and bills still need to be paid. It’s during this period that serious difficulties can step in. When cash is low it’s harder to juggle buying stock, paying staff, paying suppliers and other important bills.
What can you do in these times?
Rather than just tighten your belt, cross your fingers and hope you ride out the storm, there are other solutions available to help through this period.
Invoice finance gives you the power to control your cash flow by allowing you to get an advance on any payments due to your business.
There are lenders that will lend on a single invoice basis. Meaning if you know a lull is coming up and you’ve just raised an invoice on 90-day terms, you can get an advance on this invoice. Giving you the cash to ride out the storm.
Seizing control of your cash flow puts you in a stronger position to plan your business more effectively.
When you’re in a strong cash position you might decide to reinvest in new marketing opportunities or take advantage of early payment discounts from your suppliers. You could even use the funds to develop new business lines and brands which could help remove the problem of seasonality all together.
If you’re currently thinking about invoice finance, or have any questions about business finance get in touch.