As a new business you’re fast becoming aware of the ups and downs that come with managing cash flow, regardless of the industry you are in.
One thing is for sure; you’re not a bank. Nor are you a charity! If only your clients realised that! What you are is a new business wanting to grow. Yet how can you do that when clients aren’t paying on time? You see your cash flow diminishing... evaporating before your eyes, through no fault of your own.
All you need is invoice payment, and fast!
- Quicker and more convenient than bank loan facilities
- Available monies throughout the month to replenish stock, pay wages and increase growth potential combined with a viewable healthy cash flow to help increase credit terms for your business
Option 1 - Invoice Factoring
Choosing an Invoice Factoring service means you can manage your cash fund in a way that also has a positive impact on your books as liquidity is controlled throughout the entire month and year end. What’s more, this service enables you to concentrate on what you do best... running your business as the administration and management of credit control is managed through Calverton.
The advantages of integrating Invoice Factoring into your day to day business are:
- You issue your invoice to your customer
- An advance of 90% of each and every invoice is made available, within 24 hours, by Calverton
- Calverton act on your behalf as your credit control/purchase ledger department, ensuring prompt payment
- Calverton take invoice payment from your client
- The balance payment of 10% is then made available to you
Many of Calverton’s clients feel one of the main benefits to Invoice Factoring is the fact that they don’t have to spend time on the administration that goes with chasing invoices and payment.
This is certainly the case for Calverton’s client, The Phat Pasty Co, who say “Calverton gave us the freedom to do what we do best, whilst their experienced team relieved some of the administrative burden and gave us a solution to improve our cash flow enabling us to grow our business.”
Option 2 - Invoice Discounting
Unlike Invoice Factoring, the difference with Invoice Discounting is that you manage your own credit control and sales ledger. A completely confidential service, your clients are not aware of Calverton Finance’s involvement in your cash flow requirements or collection process. When your client pays they pay into a Calverton account that is set up in your company name – this confidential service ensures your customers do not know you are using a finance company. Otherwise, all the benefits are the same:
- Your invoice is issued to your customer
- Calverton make available 90% advance on said invoice on the same day
- Your customer pays within your invoice credit terms – managed and pursued by your own credit control team
- Unique to Invoice Discounting - Monies are received into your dedicated named Calverton Trust Account (without any knowledge of Calverton’s involvement throughout entire transaction process by your client)
- The balance payment of 10% is then made available to you.