Henley Finance are experts One measure of growth is your business turnover. A growing turnover implies many things about your business. It’s a clear indication that your market position is improving, that you’re gaining more contracts and purchase orders, and most of all, that your business service or product is gaining further traction and improving. Finance can be used to increase your turnover and lead to these characteristics of a thriving business.
As a trading business, you’ll already understand the importance of working capital to pay for your operating costs — bills, wages and everything else in between. Did you know that working capital finance can give you the opportunity to tender for larger contracts, purchase larger quantities of stock, and generally get larger as a business? The three options below will boost your working capital reserves, which can be used to boost your growth.
Giving your customers credit terms to pay you back is sensible for many reasons — in fact, you most likely already do it. It allows you to build great relationships across the supply chain and your business can, in turn, handle large payments better over time.
Invoice finance is simply the process of freeing up cash from your invoices to customers. It uses the value of the service provided by your business – tied up in the invoice – to quickly release cash into your account. Rather than waiting for 30 to 60 days for your invoice to be paid, you simply sell it to the invoice financier who will advance up to 90% of the value immediately. It keeps cash running through the business, so you can pay for your own costs and bills, and make growth purchasing decisions.
Invoice finance can be thought of as simply releasing the current value of the business regularly — it uses existing assets, so what the business currently has. However, it means your business can afford more, and therefore do more.
‘’Some businesses wonder how it will affect their margins, but if you’re taking on larger contracts, you can view the option as a long-term strategy for growth and it’s more likely to stack up.’’ Founder, Richard Butler-Creagh said.
Significantly, invoice finance products grow with your business. They are not simply static business loans. It increases as your business increases, which is why many fast-growing and large companies have it in their roster.
If you are interested in getting finance for your business, whatever it’s size or age, then arrange a consultation with Richard Butler-Creagh from Henley Finance today. Whatever your finance needs, it is worth learning from the experts at Henley Finance. Connect with Richard Butler-Creagh on his Linkedin page here.