Starting a new business can be exhilarating. You have a solid business plan and now you need to pull out all the stops to make a success of your business in the real world. There is a great deal of enthusiasm for the road ahead and it's exciting to find the right people to join your start-up.
Start-Up Business? Here's How To Manage Your Cash Flow
What is not exhilarating is managing cash flow. This is one of the most significant challenges that new businesses face. While you may be feeling extremely satisfied that you managed to bring in a great new client or sold your new product, the reality is that once you have submitted an invoice, you can wait 30, 60 or even 90 days to get your cash.
This can be an extremely stressful situation for a new business. You know that you have money coming in, but there is a significant time delay before receiving it. In the meantime, you need to pay your suppliers, salaries and other business expenses that just can't be put on hold.
The solution to this problem is Selective Invoice Discounting. This is a short-term funding solution and it's a relatively simple way to manage cash flow. Once the facility is approved, you would submit your invoice to the bank and up to 80% of your invoice will be paid within 48 hours, reducing your cash flow worries.
There are various advantages to using Selective Invoice Discounting: you can choose when you would like to make use of the facility, there are no hidden or admin fees, you only pay a fee on each invoice, there are no non-utilisation fees and no stipulated exit period.
In the early phases of your business, this facility will greatly reduce your stress levels when trying to manage your cash flow. In the long run, it will save you many grey hairs and make your business more profitable.
