Every manufacturing business relies on cash flow. It’s the lifeblood that keeps the operation running smoothly and enables growth.
Without it, a business can quickly find itself struggling to pay bills, meet payroll, and invest in new equipment or expansion.
As a commercial finance broker with over thirty years of experience working in the construction and manufacturing space, I see firsthand how a lack of cash flow can cripple a manufacturing business.
That’s why I always stress the importance of having a solid cash flow management strategy in place.
One way to improve this is with invoice finance.
Invoice finance is a type of funding that allows businesses to access the cash tied up in their unpaid invoices. This can be a huge help for businesses that are waiting on payments from customers and need cash to cover their expenses in the meantime.
Invoice factoring involves selling your invoices to a third party at a discount in exchange for immediate cash.
Invoice discounting, on the other hand, allows you to borrow against your unpaid invoices, but you are still responsible for collecting payment from your customers.
Both invoice factoring and invoice discounting offer a number of benefits to manufacturing businesses. For one, they can help improve cash flow by providing quick access to cash that would otherwise be tied up in unpaid invoices. This can be a lifesaver for businesses struggling to meet payroll or pay bills.
By having a third party take on the task of collecting payment from customers, businesses can free up time and resources that can be better spent on other aspects of the business.
Ultimately, without positive cash flow and access to cash when you need it, a business can quickly find itself struggling to survive. Finance solutions like invoice factoring and invoice discounting can greatly improve cash flow and help businesses grow.
As a commercial finance broker, I highly recommend these solutions to any manufacturing business that is looking to improve its cash flow and grow its operations – luckily for you, I know where to go. Click the book a call button above to arrange a confidential 1:1 about your finance needs today.