A new year is now upon us, and as we reach 2018 we want to look deeper into why invoice factoring could be the biggest influence to business success this year.
With more and more UK businesses investing in different forms of finance, it’s easy to see why it’s such an attractive offer. In Q1 2017 around £5.3 billion of new lending was provided to support SMEs across regions and industry sectors, according to BBA.
So why should you be factoring over the new year?
A Surge in New Businesses
About 500,000 new companies are incorporated each year, with over 3.5 million limited companies registered in the UK. That’s a lot of business to be had!
You may even be one of these new startups – if so then you too could benefit from invoice finance this year (it’s not just for established businesses).
Image credit: rawpixel via 123RF
As long as you’re looking to borrow at least £5,000 against invoices, you can borrow from an invoice finance company to look after all of your invoices for you.
One of the largest benefits to our service is that there are modest fees involved – so even if you’re just starting out you don’t need to worry about breaking the bank.
New Year Means New Clients
With over 500,000 companies estimated to be registered this year, it’s no surprise that you may see an increase in clients over the new year. Although an increase in clients might sound positive, if they don’t pay their invoices it could leave you in the dark.
Factoring is a flexible finance, where you effectively (but not literally) take out short-term loans against invoices owed by every client you wish to factor for. The flexibility means you can pick and choose who you use the service for.
Image credit: rido via 123RF
Quick access to funds also means that there’s no worry about waiting for invoices to be paid on time. You get cash against anything unpaid within a matter of hours – so you can continue to run your business smoothly.
Public Holidays Getting in The Way
Every year we encounter several bank holidays that can sometimes get in the way. Many clients owing money will simply put payment off until the public holiday is gone, leaving you and your business financially stricken.
Image credit: Roman Sigaev via 123RF
With invoice factoring you have more control over payments and there is less stress on your part, as the factoring company does all the hard work for you.
With CCC Finance, we take over debt collection – so not only will you get your invoices paid from us straight away, we’ll take away the hassle of chasing payments.
Starting Off On The Right Foot
Getting your finances in order at the very start of the year makes it a lot easier going forwards. If you have a good idea of what needs to be done from the start, you’ll encounter less issues down the line.
Factoring can offer back office support to you, so even if you don’t know quite what to do – we can offer help and advice on how to best get your unpaid invoices in order.
Image credit: PaylessImages via 123RF
A factoring agreement also means that you’re better places to meet growing demands later in the year, should your business grow.
If you would like to talk to us about invoice factoring, what we do and how we do it – simply send us an email at firstname.lastname@example.org or give us a call on 0845 468 6423.
Feature image credit: Nuthawut Somsuk via 123RF