Essex Commercial Finance

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“It’s Cash Flow Jim, but not as we know it..”

Star Trekkin

Avid Trekkies will know that the quote was never actually delivered in an episode of Star Trek, but was actually a line from “Star Trekkin’” by The Firm in 1987 – but pertinently both life and companies’ cash flow is not as we know it in the current Covid-19 environment.

Cash flow or working capital, however you want to term it, is what allows your business to operate, trade and essentially exist. That sounds like an over simplistic statement, but the reason why businesses use cash flow forecasts is to stay one step ahead in ensuring the flow of cash in their activities.

Cash flow provides for a wide range of purposes such as wages, fixed overhead costs, paying suppliers and increasing or diversifying your activities as business conditions dictate – or opportunities present themselves. When cash flow dries up, your trading activities can cease up, and this can prove terminal.

Even if your company has not been directly impacted by Covid-19 and suffered lower sales or productivity, or even a forced closure, it is highly likely that through your supply chain, staffing or customers and clients you will have felt the effects in your cash flow; the wheels of virtually all businesses have hit bumps in the road.

Invoice Finance may not be the most suitable product for every part of the economic cycle – but think of it another way in the current Covid-19 pandemic: what other financial facility will pay you for most of the work that you have completed just a few days after you have completed it, when your customers won’t be settling anything with you for another 60+ days?

We see this as the clearest demonstration of the ends justifying the cost of the means – many businesses won’t be able to manage without these facilities in the coming economic climate – and we consider Invoice Finance will likely be one of the best cash flow conservation tools available to companies.

  • It’s flexible and can adapt to most sectors and business models; it fits with business conditions and turnover, unlike the rigid structure of a business loan.
  • Your company will need continued support to ensure that waiting for invoices to be settled doesn’t limit your activities – or your ambition.

Invoice Finance lenders are currently offering many incentives for SMEs to try a facility and are convinced you will quickly recognise the benefits and adapt to it longer term. These incentives can include:

  • No facility set-up fees
  • Discounted interest rate on the facility for an introductory period
  • An initial contract free period, often 6 months

Your company may already have an Invoice Finance facility in place, and you might be wondering how we could help you – whether or not you are Covid affected there may be cost and additional benefits available to you right now with another provider.

If your business has been affected by Coronavirus, then until the end of January you have a unique opportunity to access an Invoice Finance facility under the Government backed CBILS scheme – where some accredited lenders on our panel can offer some great benefits for your company, over and above everything that you will gain from your improved access to cash flow:

  • Invoice Finance with no set up costs, no service fee and no interest charges for 12 months (100% cost free for 12 months) – and no ongoing contractual ties beyond that period
  • Term loan alongside an Invoice Finance facility – loan for up to 40% of the facility level for up to 5 years, CBILS Business Loan benefits apply
  • ‘Top Up Funding’ – commonly up to 30% extra added to the pre-payment limit of the Invoice Finance facility – up to a maximum of 100% of invoice amounts submitted – no interest charged on the ‘Top Up’ portion for 12 months

All of these CBILS facilities are also open to Covid affected businesses that already have an IF facility to switch to.

As you approach and plan for the next 12 months, is it likely that you will ALWAYS have the cash flow necessary to meet wage bills, pay suppliers, or grow your activities, without the certainty of knowing that when you issue an invoice you will get funded almost immediately?

In these difficult times, it could pay to add certainty wherever you are able to. Why not know for sure when your invoices will be funded?

It may not be cash flow management as you know it, but why not get in touch and discuss how we could help you trade out of the pandemic period?

Please call 07726 195 106, or e-mail

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Essex Commercial Finance Limited  is a company registered in England and Wales with Company number 12610135
Registered Office : Suite 3, 8 Kingsdale Business Centre, Regina Road, Chelmsford, Essex, CM1 1PE

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