May 14th, 2014. Ben Lloyd
How to Tackle Your Business Money Worries Head On
Money is a strange thing. You either have it or you don’t. But even when you don’t have money you can get it from other places, but often this adds to your money worries. Luckily for you, there are plenty of ways to find fresh cash flow from within your company – here’s how:
Re-Finance Existing Debt
Are your debts dragging you under? Do you constantly worry about how you are going to make each monthly payment? Sometimes your old debts have high interest rates and sore repayment times which make them extremely hard to repay. By simply addressing the issues with your existing debt, you can refinance it so that it is more affordable and the debt doesn’t continue to stack up.
Taking a loan out on a lower interest rate than your current debt can help you get a handle on your money. Before doing this make sure you check out how the rates will change over the term of the loan. The last thing you want to do is rush into a loan that will place you right back into the same position you were in before.
Make Sure You Get Paid
Poor cash flow can be very damaging, especially if you have multiple clients who pay late – if at all. By enlisting the help of an invoice factoring broker, you can get the money you’re owed through invoices straight away. This means that your business keeps the cash you need to successfully operate even if your clients are slow in fulfilling these invoices.
How this system works is that each time you receive an invoice, a lender will give you a percentage of the invoice – up to 90% – straight away, and then provides the remainder of the invoice (minus fee) when the amount is collected. This finance type is vital for keeping cash in your company and prevent you from running up large debts.
Balance Your Books
You would be surprised by how many money problems come as the result of poor accounting. Taking the time to regularly balance your books can save you from finding yourself in the red without knowing how you got there. Checking your books will show you where you are over-spending and under-spending with plenty of time to change your approach. If you aren’t very good with numbers then enlist the help of an accountant – they’ll be worth their weight in gold.
Seek Professional Help
There are money advisors available to give you advice on how best to keep your finance on track and squeeze any extra cash out of your company. A quick chat with an external source could help to clear up any confusion and start making logical decisions not based on the emotions attached to the company. Sometimes just talking about your money problems with a professional can help you to dig yourself out of a bind.
The best thing you can do in this situation is to tackle the problem head on and try to solve it in the early stages, before it becomes a problem that could potentially sink your company. The faster you act the better your chances will be at preventing any long term financial damage.
If you need to discuss invoice factoring as an option for keeping your business afloat, then give us a call today; our team of experts will talk you through the process.
Article By Ben Lloyd
May 14th, 2014
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben