Managing cashflow 'is crucial'

01/04/2008

Managing cashflow is a crucial aspect of running any business and particularly for those that are looking to expand rapidly, it has been suggested.

According to Tim Rigg, head of Bank of Scotland Corporate in the north-west, many companies aiming to move from being a small to a medium-sized firm fail because they cannot maintain their cashflow.

However, for those firms that have secured a number of businesses deals but are waiting for the resulting cash to come through, there are invoice discounting and debtor finance solutions available in the UK that can help, Mr Rigg told the Times.

Offering advice to growing businesses, he said: "You might be getting contracts or selling products, but the money will take a while to come in.

"Invoice discounting is a useful way to improve your cash flow."

Many newly-established companies in the UK fail but research by Abbey recently suggested that most start-up business managers are glad they took the risk.