With summer nearly here (or has it already been given the weather in February and at Easter!) people will be looking forward to the 2 May bank holidays and forward to time off in the summer. For any business, this means planning staff absences and ensuring that products and services continue to be supplied and delivered on time to customers.
For small businesses in particular, the summer months can place additional pressure on cash flow. Staff take time off, which has an impact on the ability of the productivity of the business. This can reduce sales, increase production times and eat into profit margins. Similarly, customers also take holiday, which can lead to slower payment, increased chasing of unpaid invoices and the inevitable “the person who deals with that is on holiday this week” response.
In any business the old saying of “cash is king” is true. So what can be done to help reduce the pressure on cash that the summer months bring?
If a business has equipment it already owns or finances it may be possible to release the cash tied up in this – the equity – to provide a much needed cash boost. This form of finance, known as equipment refinance, enables a business to quickly access cash which can be used for any business purpose. Clients we have helped this way have used the cash to purchase stock, pay VAT bills, pay staff costs or increase marketing spend to name just a few of the uses.
Making the most of the assets your business already has, rather than applying for other forms of finance such as loans also has tax advantages, reducing costs further.
If your business needs a summer cash boost why not contact us today to see how we can help?