It has been reported that in January, the manufacturing industry experienced its best performance in nine months.
Business confidence has returned, following a majority Government general election and breaking of the Brexit stalemate. In fact, 45% of SME manufacturing companies say they are more confident about their future; the highest percentage in six years.
Positive 2020 Outlook
New orders are rife which has had a positive knock on effect on employment levels and performance; the industry can now look forward with positivity and optimism.
What’s more, 60% of SME manufacturers expect to see sales increase in the next six months; with 51% planning investment in plant and machinery in the next six months also.
Global Manufacturing Crisis Turns to UK For Relief
Looking forward, the Coronavirus, whilst playing havoc on economies and health throughout the world, could well benefit UK manufacturers. Many having cited that enquires have massively increased, with additional and new business orders being placed, as a result of flagging distribution and supply lines from China.
This international concern has highlighted how vulnerable global manufacturing is when a major crisis comes into play – retailers are particularly at risk with this specific emergency – and as such is motivating the industry.
Maximising These Opportunities
All of this is encouraging news for an industry that has suffered in recent years, and is now flourishing. So where is the cashflow and working capital to maximise these opportunities?
Without it a business can’t thrive, enjoy growth opportunities or benefit from financial stability. That’s where invoice finance comes in – it’s the UK’s most popular form of alternative finance. Some of the benefits include:
- Advancement of up to 90% of invoices within 24 hours.
- Ensures fluid cashflow and working capital.
- Arranged and operational in less than two weeks.
Here at Calverton Finance, we are award winning providers of invoice finance, to manufacturing SMEs, with an experienced and dedicated manufacturing client team on hand. We understand the industry and only know too well the burden of late paying customers and the effect this has.
We are aware of the challenges manufacturing businesses face with upfront costs, expensive machinery, new technologies, storage and staffing – all of which must be paid for by you before your client pays (and usually late).
How can you complete the below without cashflow:
- Invest in additional staff to increase productivity.
- Upgrade to more efficient technologies to increase production.
- Expand into new premises to house additional output.
Invoice finance works with you – an organic facility that doesn’t run out, with far more flexibility and workability than a traditional loan.
In just 5 minutes see how easy it is to secure your financial future with our online 5 Minute Approval.