In the CBI’s final Industry Trends survey of the year, UK manufacturers have reported an increase in their total order books for the third month running. However, estimates remain cautious for the new year, with many predicting tough times still ahead. An increase in orders is good news – this could show the manufacturing sector is starting to pick up following an unpredictable year in terms of financing. However, this is just the start of hopefully a continuing trend, and growth is still cautious. Factoring can help the manufacturing industry to overcome the challenges of small business in the coming year.
Of the 392 manufacturers interviewed for the survey, 18% reported that total order books were better than normal. This is good news – however, 30% still recorded that their order books were below normal. Manufacturers are expecting growth to be flat for the next three months, though this is an improvement on last month it is still below the robust growth of 12% predicted in October.
This all paints a mixed picture of the manufacturing sector. However, if your business is struggling to stay afloat due to restricted cash flow and slow payment from clients, then there are many specialist invoice finance providers that can help. This is one sector that can really benefit from invoice discounting and factoring to counter many of the common problems that businesses encounter.
Invoice finance can help to unlock cash from unpaid invoices so your business can improve cash flow and free up funds for growth. The supply and demand nature of manufacturing means that cash flow can really become a big problem, and so it’s all the more important to address these kinds of issue with the right type of small business finance. Rather than rely on the banks, you can get fast, flexible and targeted finance through invoice factoring.