free small business advice & information
Main Menu
Hot Links
| Article Index |
|---|
| Managing Your Cashflow |
| Components of Cashflow |
| Cashflow Forecasting |
| Using the Forecasts |
| Sales and Marketing |
| Credit Control |
| Controlling Expenditure |
| New Funding |
Page 8 of 8
Managing Your Cashflow
7. New Funding
You need a solid financial base to underpin the cashflow of your business. Take full advantage of the different types of finance available.
7.1 Overdraft and loan finance may be limited by the security you can give the bank.
7.2 Factoring allows you to raise finance based on the value of outstanding invoices.
- Growing businesses in particular often find that factoring provides a more substantial and flexible source of working capital than overdrafts or loans.
7.3 Consider using asset finance to purchase computers, vehicles, plant and machinery.
- For example, both hire purchase and leasing allow you to spread the cost of the acquisition, with the asset itself providing the main security.
7.4 A strong financial base of equity finance (and directors' loans) is vital when a business starts up. Subsequent injections of equity finance can help you achieve step changes in the growth of the business.
- For example, if you need extra finance to buy another firm or open a new factory.
Labels: Cashflow Management, Reduce Costs
Related Articles
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory