The availability of cash when it is most needed is one of the most important components of continuing success and growth for any business. There are many times in the year when cash flow may be tight, but some of the toughest times can be when having to find that little bit extra to pay personal, partnership or corporation tax bills.
Without cash companies can’t invest in new products, can’t implement future growth strategies or most importantly pay tax bills when they are due.
It’s not simply a case of having cash backing up your business. This money also needs to be readily available at the moment you want to push growth forward or when monies become due. So it’s all very well having the value of your SME tied up in the property you own, but if you can’t maintain a good cash flow with it, that value can be worth next to nothing.
The Importance of Cash Flow
For any business, cash flow is the lifeblood that keeps things moving. It derives from a variety of sources – payment for services from customers, money coming in from new investors and even interest from savings that can be ploughed back into the business. Having this money available with a relatively high positive cash flow (meaning more money is coming into your business than going out) means that SMEs can invest in the future, hire new staff, buy equipment and open additional premises if they want.
There are, of course, a variety of ways in which cash flow can be interrupted. Money might be tied up in a property and can’t be fully realised when you need it. You may be waiting on third parties to pay invoices and feed back cash into your business, even in some cases to pay wages. There might be a temporary problem or urgent situation that suddenly arises and diverts valuable cash, leaving less in the operating pot than you would like.
Finding the right financing with PFC
Whether you have a new project, innovation or are looking to pay your July tax bill often there is a need for some interim solution to help get over a particular hurdle. Whatever the reason, PFC can find the right financing for each particular situation your business faces. That includes:
- Tax funding – Unlike other bills, there is limited leeway for late payments. Once the deadline passes, surcharges and penalties start accruing and can have a massive impact. Having immediate access to funds can help manage any issues with short term cash flow.
- Asset Finance: One area where businesses often need to push forward is with new equipment – it can improve their profitability but requires an initial, significant outlay which can be problematic. Rather than having to defer, PFC can help businesses find the appropriate financing for their improvements with structured repayments.
- Commercial Loans: Finding a bank to make a large commercial loan can often be difficult no matter how it might benefit your business and help it to grow. We can provide a range of financing from bullet loans, buy to let financing and bridging loans that are tailored to individual businesses.
- Invoice Finance: One area that all too often stalls cash flow for businesses is the delay in payment for invoices. PFC can help SMEs get over this hurdle by providing quick invoice financing that makes funds immediately available.
- Practice Finance: Businesses from health and medical practices to the legal and accountancy professions often need tailored loans and financing schemes in place. Provision can vary from helping with practice development to spreading the cost of VAT returns.
Regular, strong cash flow is one of the primary factors that determines success and growth. Whether that’s getting over a temporary problem such as tax bills or invoice payments, PFC brings a huge level of expertise to the table and can help you find the financing that makes a difference.