Cash Flow Finance is a great solution!

Trying to manage the incomings and outgoings of any business can be tricky. That is why cash flow is known as the blood of a business.

The challenge many businesses face is trying to obtain financial loans when there is little cash in the bank. This is even more difficult if you don’t have a lot of assets or collateral to use to apply for a loan.

However, if you have cash that will be paid through the expected sales (revenue), then Cash Flow Finance is a great solution. Businesses are essentially borrowing from a portion of their future cash flows that they expect to generate for good and services that are sold today. Banks or creditors can use the anticipated amounts of receivables due to be collected to help project how much cash will be generated in the future.

To obtain Cash Flow finance, it is key to generate a Cash Flow Statement. The cash flow statement records the business’s net income or profit for the period at the top of the statement. Operating cash flow is calculated, which includes expenses from running the company, such as bills paid to suppliers as well as operating income generated from sales. It also includes any investments such as equipment. At the bottom of the cash flow statement is the net amount of cash generated or lost for the period recorded. Generally speaking, a Bookkeeper or Accountant will be able to help you with a Cash Flow statement.

For smaller businesses, business loans are most common; however, invoice financing options are also widely used. Invoice Finance does not require any security such as property or any other assets. It is secured against the project sales that the business will generate.

Invoice Finance comes in two options, Invoice Factoring or Invoice discounting. Both are similar with subtle differences.

It is best to speak with a cash flow specialist to help terms the best cash flow options for your business. Choosing the wrong type of finance option could impact your cash flow and the business.

At FiFo Capital, we can assist you with understanding your finance requirements. We are experts in cash flow finance.

Now is the time to speak with a Financial Specialist and discuss your current and future financial plans for your business. At Fifo Capital, our experts can help you deal with inflation. Contact FIFO Capital Ireland today.