So, your are looking to get your hands on some capital, you may have chosen to go down the Factoring or invoice financing route, you may already have the cash you need, now what?
As a business, there are always elements that require cash flow to be able to purchase new materials, pay for staff, grow the company by taking on new staff or buying vehicles or machinery, the fact is, business will always need some investment in certain areas.
If you do have an amount of money just sitting not doing much, rather than keep it in a normal business account you could transfer it into a business savings account so that money can accrue interest.
No some businesses will do this anyway, and if they have invoices sent to them by clients, their payment terms may be up to 90 days, this means the longer the money can sit in the bank, the more interest it will gather! Happy days.
You don’t want to be caught in that nasty trap of not paying because you want the money to sit for as long as possible, its not great business, and it will just end up with frustrated clients chasing you for payment at every opportunity.
So yes, invest the money wisely in a business savings account especially if you have no need to use it just yet, then you can gain yourself a little extra cash in interest.
Factoring offers so many solutions that can lead to gaining more capital and allowing your company to grow.
Savings accounts are a savvy way to put away your money for the tax man or for a rainy day, but still gain that interest which is a bonus. A range of UK high street banks offer different levels of business savings accounts.