Occasionally in business, you'll have temporary needs that demand quick financing. For example, what if there's a sudden spike in your need to hire labourers, and you're scrambling to add more people to your staff? In a situation like this, there's little room for error where cashflow is concerned.
It's important to have a tight grip on your cashflow process - as well as keep an alternative source of financing available.
The last thing you want is to recruit scores of new employees and bring them on board, only to discover you don't have the cash to pay them. To protect against this, it's important to have a tight grip on your cashflow.
Seizing upon new business opportunities
Drawing up a budget is never as easy as writing a monthly plan and following the same script every month - your strategy should be more dynamic. Sometimes, there are opportunities to ramp up your business, and you should capitalise. For example, Home Consortium is planning to open 10 new Masters stores across NSW, Victoria and Queensland in advance of the Christmas season, a move that will bring a rash of new hires.
Even if your organisation doesn't have the means to make this kind of large-scale, you still might find similar opportunities on a smaller scale to increase your productivity and take advantages of spikes in demand. There's just one challenge involved - sometimes, you get stuck in a situation where you're hiring for December's needs using September's cashflow. This can put you in a bind.
Tightening up cashflow when it matters
If you're planning to ramp up your company's spending, you can't afford to be lax about collecting debts your company is owed - you'll need working capital fast. It's good to being stricter than usual about your debt collection during high-leverage seasons when having cash is more important. This means billing clients quickly and enforcing payment deadlines across the board.
When your company needs cash, tighten up your invoicing process.
Having said that, it's exceedingly difficult in business to collect 100 per cent of the debts you're owed in a timely fashion; the occasional gaps are just about unavoidable. This is what leads many business owners to search for alternate funding strategies.
Get access to the financing you need
It's never a good time to have cash tied up in your debtors' books, but that's especially the case during a busy season when you're trying to spend more than usual. If you're in such a situation, get in touch with us at Earlypay. We can find a way to help you out.
By offering solutions such as debtor finance, we give companies a means of collecting fast cash against the debts they're owed. You'll no longer have to worry about snags in cashflow - you can simply get the money you need and answer quickly when opportunity knocks.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].