When a business opportunity knocks on your door, can you afford to wait while the bank officials go through their normal credit processes?
Sometimes it takes months before the bank finally approves - or declines - a business credit application. We understand urgency: if you don't move quickly, you lose out. We make quick credit decisions, based on many years of financing complicated business transactions.
What's more, we don't just give you money. We also help you put together a transaction which is best for you, by taking into account factors such as cash flow, payment options, tax, accounting, law and above all business sense. We are hands-on entrepreneurs like our clients.
As security we accept a bond on fixed property. We focus primarily on the security offered and less on the application of the funds.
Cash flow solutions
Many businesses experience cash flow problems, for a variety of reasons.
These reasons may include exceptional growth, inadequate working capital, clients demanding extended credit terms, clients not paying at all, inadequate cash flow management, too much working capital locked up in stock etc – usually a combination of these factors.
Cash flow solutions include any solutions to resolve these problems – effectively better cash flow management and using available cash resources as best as possible.
Strangely, many small business owners are not prepared for handling cash flow problems, which will arise in any new business – sometimes even in an established business.
Cash is King – always and forever! Cash flow problems cause the downfall of the majority of failed new businesses.
To identify the problems is fairly easy – to resolve them is usually more difficult.
Firstly the business owner or financial manager should identify the reasons for the cash flow problems.
Sometimes they are not easy to recognise. It is advisable to bring in an accountant or external business advisor to assist in this process.
Once the reasons for the cash flow problems have been identified and considered, one should look for ways to resolve the problems.
Sometimes the solutions are obvious: stricter credit procedures, reducing stock, demanding credit from suppliers, retrenching staff if appropriate, moving to smaller and cheaper premises, cutting other unnecessary costs, encouraging clients to pay cash by offering a cash discount or converting debtors to cash by invoice discounting or factoring.
If the solutions are not fairly obvious, there may be an inherent problem with the business model, i.e. it simply cannot work unless significant changes are implemented.
An experienced professional advisor should be consulted to assist; otherwise financial ruin will most likely be the result of the cash flow problems.
Our advice is to act quickly and decisively by following the advice of your professional advisor before it is too late.
The cash flow solutions available to small businesses are essentially the same as for any large business.
These include stricter credit procedures, reducing stock, demanding credit from suppliers, retrenching staff if appropriate, moving to smaller and cheaper premises, cutting other unnecessary costs, encouraging clients to pay cash by offering a cash discount and converting debtors to cash by invoice discounting or factoring.
Large businesses employ accountants and other financial staff to manage cash flow – they know that a good cash flow is the life-blood of every business and their job is keep the business running by keeping cash flow healthy.
The problem for a smaller business is that it cannot afford to employ experienced and expensive personnel just to manage cash flow.
This means that the small business owner/entrepreneur must have a very thorough understanding of cash flow management, how cash flow problems arise and how to resolve cash flow problems.
The best advice we have for any entrepreneur is to read and learn as much as possible about good cash flow management before starting a new business!