Funding, Cashflow & Working Capital

Cashflow Forecasting & Management

CASHFLOW is one of THE most important aspects of running a business – any business.

Growing businesses often have cash tied up in debtors or stock, which can make cashflow tight even though the business is profitable and growing. Equally, a tight cashflow can be a sign of more widespread business issues such as high overheads or a declining profit margin.

Business owners often don’t realise that they have cash flow issues until it is too late or the problem has become a lot bigger than it needed to be, what then follows is a frantic attempt to borrow money to fund the short term future of the business and “keep it afloat”.

One of the biggest pieces of feedback that we receive from bankers and funders is that their clients cashflow is “out of control” or any requests to increase overdraft limits and extend banking facilities are too late or at too short notice.

FD Analytical monitor your current cash position AND forecast you’re expected cashflows, this enables us to offer suberb advice to you, and an advanced warning of periods of cash shortages, so there is plenty of time to prepare and arrange a solution, which may be; extending overdraft facilities, raising bank loans and or finance, opening an invoicing finance facility or changing your customers methods of payments and your cash collection to online systems, which offer immediate cash settlements.

If you’re business has an abundance of cash, similarly, our analysis and works will enable you to invest your funds in other areas or projects, safe in the knowledge that you will be retaining sufficient cash to fund your day to day operations – without this knowledge how many opportunities to grow, purchase new equipment or invest elsewhere could you be passing up?

 

Working capital management

Efficiently managing your companies working capital is essential in ensuring that you’re business doesn’t have unnecessary amounts of cash tied up within debtors, creditors and stocks.

In a busy company environment, it is incredibly easy to allow debtors to run out of control, then making it difficult or awkward chasing the customer at a later date for payment, not wanting to risk upsetting them and losing future business orders.

A huge amount of business target SALES and forget about CASH. Allow FD Analytical to manage your debtors position so that you don’t have to.

Creditors or credit limits with suppliers, can be a key and really useful source of funds for a growing SME, and can often be a less expensive source that other funding solutions.

FD Analytical will review key customer credit limits on a quarterly basis to ensure that they reflect the requirements of your business, providing strong financial updates and building strong relationships and trust with your suppliers can be key in extending credit limits and terms.

Stock is notoriously difficult to control and manage with many SME owners, airing on the side of caution and “over stocking” to ensure that you are always able to fulfil customer orders on time.

FD analytical will analyse and “age” your stock holding to understand what stock is “not turning over” or potentially becoming obsolete, this will enable you to liquidate such stock and convert it to cash to retain within your business, or to utilise in buying new, relevant stock that is in demand from your customers.

Working capital is a key component of keeping your business healthy, why not allow FD Analytical to carry out a review of your businesses position, contact us for more information.

 

Bank & investor reporting

Historically, raising and maintaining bank debt was relatively straightforward – it has now become difficult, burdensome AND time consuming. Banks will almost always require your business to abide by and report on, a monthly or quarterly basis against pre-set covenants, where a “breach” can result in the removal of loan facilities.

FD Analytical has huge amounts of experience in dealing with UK banks at the highest level, helping clients to maintain loan facilities from £200k to £67m, our experience and professionalism will add credibility to your business, and assist in the event of a covenant breach or if further funding is required.

For a confidential discussion around your business financing please contact us today.

 

Raising finance for growth

Funding can be difficult for SME’s particularly if they are new or “start-ups” many banks will require a certain number of years trading accounts or possibly even directors personal guarantees. As a result of the “shake out” in the funding market due to the recession and recovery years, funding options have changed hugely, and there are now a large number of options and sources of finance in addition to traditional bank funding,

FD Analytical can help assess the business requirement and suitability for; factoring (invoice discounting), over draft facilities, bank debt and mezzanine finance.

We will review the availability, suitable and cost of each method of funding so that you can make an informed, clear decision.