Q: How do you cope with peaks and troughs in sales? Is there any way to maintain cash flow during the quiet times, so you have enough money to complete orders when they start coming in?
Aug 14 2007
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Answered by: Mark Endersby Ask a question
This is a common problem and many small businesses can find a cycle of feast and famine. For some businesses it can be due to the seasonal nature of their sector, for others it may be because they lose focus on their marketing activities during busy periods and then suddenly realise that the orders have dried up. Whatever the reason it is tough to cope with and it is important to ensure that there is enough cash coming into the business to continue operations.
If you are waiting for customers to pay you for work that you have invoiced an invoice finance facility may be suitable.
Alternatively a wage facility may be able to offer up to 9 weeks wages to an established company.
Cash should be preserved and where possible finance should be sought to purchase new machinery, office furniture, etc..
If you would like further advice please feel free to contact us at:
finance@fundingsolutionsuk.co.uk
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