Factoring means a finance company advances cash against your invoices and takes over collecting payment from your customers, while invoice discounting gives you the same cash advance but you keep…
Invoice finance is generally better for growing businesses with high receivables and variable cash needs, while a bank overdraft suits businesses with stable, predictable cash flow gaps and an existing…
Manufacturing working capital is the tightest of any UK sector, with a cash conversion cycle of 86 days – meaning cash is locked up for nearly three months between paying…
Cash flow in professional services is undermined by a deceptively simple problem: your biggest cost – your people – must be paid on the last day of each month, but…
Working capital in construction is uniquely challenging because the sector has the highest days sales outstanding of any UK industry at 68 days, driven by stage payment cycles, contractual retentions,…
Working capital in retail is dominated by inventory – the typical UK retailer has a cash conversion cycle of just 15 days, but that short cycle masks a constant battle…
A new hire typically requires two to four months of their total employment cost in working capital, because you start paying their salary, National Insurance, and expenses from day one,…
A 13-week cash flow forecast is a week-by-week projection of every pound coming into and going out of your business over the next quarter, giving you a clear view of…
Seasonal business cash flow is the challenge of funding large upfront costs – stock, staff, marketing – weeks or months before the revenue from your peak trading period actually lands…
An early payment discount is nearly always worth taking if you have the cash available, because the annualised cost of not taking it is far higher than most businesses realise…
This content is for educational purposes only and does not constitute financial advice. Consult a qualified accountant or financial adviser for guidance specific to your business.