How to Secure Cashflow of Up to £750k For Your Digital Agency?

Posted: 21st January 2020

Maintaining and controlling cashflow is always a problem for digital agencies, as is securing financial support and funding. Cashflow is the lifeblood of a business – without it you cannot cover day to day overheads, let alone look to invest in new technologies and expansion.

Fact: You can secure cashflow for your agency with Calverton’s invoice finance – advancing up to £750k of issued invoices.

Constant Cashflow

Invoice finance guarantees a constant cashflow even with part billing, milestone invoices and retainer contracts. As a result, you build up working capital, the whole time you are issuing invoices. You are able to meet your financial obligations, even though your clients (increasingly paying later and later) haven’t met theirs!

Fact: You need to optimise your cashflow and make your CapEx work hard.

Fact: Invoice finance and confidential invoice discounting allows you to do just that!

Traditional banks require assets as security, and with the few tangible assets held by digital marketing agencies it’s nearly impossible for them to secure traditional finance and funding.

Your Challenges

It’s this staged billing and late payment that sees digital agencies constantly suffering from a shortfall in cashflow. And it’s this part billing that hinders an agency to secure traditional finance.

With invoice factoring, you benefit from...

  • Flexible plans
  • Outstanding customer support teams
  • Advanced online portal with comprehensive reporting system
  • Payment within 24 hours

You aren’t “borrowing” money with invoice finance, so it doesn’t affect your credit score. You are simply being advanced a percentage of the monies owed to you (balance paid when your clients settle) on issued invoices. You are advanced that money within 24 hours ensuring your cashflow is fluid.

As our client, Stuart McDonald, Co-founder of digital agency, Ball Street Network shares, “growth is a priority for us so as a result we need to ensure we have a solid bottom line at all times; this attracts new partners and sponsors. Yet, in the digital media industry production is timely which eats into our cash flow. Even if we secure upfront payment from clients, we are still looking at 60+ day terms. So, we needed to secure funds on outstanding invoices that were guaranteed money in but that might take a while to hit to books.”

To see how your marketing media agency will benefit from invoice finance, ending those cashflow pressures, go online for an ‘in principal agreement’ in less than 5 minutes, or call our team on 01908 268888 for tailored invoice finance costs for media agencies.