About Your Hidden Capital
Growth is the goal of all businesses, unfortunately, it can be difficult to allocate the resources and funds to do this when stock needs to be bought, wages paid and outstanding invoices loom. However, if businesses had the capital that they had earned today in their hand tomorrow rather than in the standard 60 to 90 days then the funds to grow your business would be available. Many don’t know it but there is hidden capital sitting idle in many businesses. This is about releasing your hidden capital and what you can do with it This is actually possible, to release your hidden capital, through debtor finance, sometimes called factoring or invoice finance. It’s a working capital finance tool that many business owners are unaware of. The below diagram illustrates how this simple process works and how you can use money from completed sales to finance new ones straight away rather than waiting for payment so that you can play catch up with existing clients.
A significant benefit of debtor finance is that the finance you receive is not tied to the value of your home, other real estate or any other asset. This means that the finance you are eligible for is dependent on the size of your business and the growth of your business, which also means that it grows with your business.
Often, it is the small business that struggles the most to access working capital finance from banks to grow, so, this guide offers a snapshot of how you can access capital locked in your business and ten potential ways you can use that capital to grow and improve your business.
What could you do with working capital that you had unlocked through invoice finance when you ha tove access your hidden capital
Here are some suggestions or what you could do and with the hidden capital you have unlocked
1. Buying more stock/inventory
2. Negotiate prompt payment discounts from suppliers
3. Increase sales and marketing budget
4. Employ for sales staff or more production staff
5. Purchase equipment or machinery to streamline your workflow
6. Expand into different product lines or services that compliment your current business and distribution channels
7. Expand into different regions, states or overseas
8. Take sales and marketing online
9. Undertake the research and development project you have thought about
10. Work ON your business not IN your business
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