In this uncertain economic climate there are many external factors affecting your business growth.
Most business owners will plan ahead to allow themselves the breathing space they need to focus on running their business but what happens when unexpected issues arise and what solutions are out there to support you?
Monitoring cash-flow is an important task for any business. Developing an understanding of your cash-flow situation and keeping on top of it is crucial to business growth.
However, many small businesses suffer from cash-flow issues due to unexpected costs or late paying customers and with 20% of SME’s complaining of cash-flow issues due to late payments, many businesses are finding their working capital stretched to the limit.
With healthy cash-flow so important to any business, it’s vital you keep on top of late payments and stick closely to your business plan and financial forecasts.
Often a sensible cash injection at the right time can ease the pressure on cash-flow and allow you to re-focus on running your business.
A working capital loan can help with day-to-day running costs, providing the funds you need to keep on track with everything that keeps your business moving forward, from accounts payable to office rent and wage bills.
With Acorn, a working capital loan is:
• Straight-forward and easy to arrange
• Takes your time out of the equation
• Can be revolved if required
• Maximum 12 month term
Struggling to find finance
With many small businesses struggling to get the funding they need to grow or sustain productivity, searching for finance can be a minefield, especially for a business in need of a quick solution.
And with banks now more reluctant than ever to lend, many businesses are looking at the alternative finance market.
But with so many options out there, how do you know which one is the right facility for your business?
Speak to a broker about your options, they can assess the market and find you the best solution.
A good broker will have relationships with a wide panel of lenders and will do all the legwork to get you the most suitable funding solution.
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Growing too quickly
One common mistake made by some small businesses is growing too quickly. It’s vital you stay on track with your business plan and don’t be tempted to grow outside of your means.
A significant increase in demand can also mean an increase in costs and if you can’t fund the demand until invoices are paid, your cash-flow will suffer.
Faster than expected growth can also put pressure on staff to meet the new demand, manifesting in poor customer service or tasks falling through the cracks.
This may also see other areas of the business, such as marketing or training, suffer due to your focus being drawn elsewhere.
Plan for the unexpected, take a moment to review progress and ensure you’re on track with forecasts. You could even offer incentives to customers for early payments if possible.
All this helps keep cash-flow buoyant in those early growth stages and means you have far more room to manage your growth organically.
Finance such as a business development loan can also reduce pressure on cash-flow by allowing you to invest in areas of the business, such as marketing, staff training or website development without touching that all important cash-flow.