Manufacturing is just one of the business sectors that could make good use of invoice finance. This sector hasn’t had it easy in recent times – with problems such as rising raw material costs as well as all the snowballing economic issues for the UK and beyond, manufacturing SMEs have experienced huge impacts on their profitability in recent times. The manufacturing industry is at the heart of the UK economy and so it’s important for growth that this sector achieves more stability in the near future.
The manufacturing industry accounts for 15% of the country’s GDP and 55% of its total exports. This means SMEs in this sector are a hugely valuable part of the economy, and one which is struggling to keep up with increased pressures. If your company is suffering then invoice finance is an alternative lending measure that has helped a huge number of manufacturing SMEs to get back on the right track.
Manufacturing businesses can take advantage of the accessible and flexible finance offered by factoring and invoice discounting. These forms of finance release cash tied up in unpaid customer invoices, giving your company the money it’s owed in good time. By releasing working capital from your sales ledger, it’s possible to bridge the gap between invoice issuing, customer payment and financial obligations such as payroll, tax and suppliers.
Alternative funding is becoming more mainstream as more business need to search outside the banks due to a lack of viable finance for their business. The cash flow benefits of invoice finance often make it stand out – it doesn’t involve taking on new debt, and funding can grow as your business grows. If you’re pushed for time, you can also take advantage of the credit control system offered with factoring - or, if you’re a medium sized business who wants to remain discrete, invoice discounting allows you to stay in control of your credit collection. Manufacturing is just one sector that can benefit from taking up an invoice discounting or factoring plan. Take a look at how they could help your business today.