Lean Working Capital - the alternative to factoring or stock finance?
With factoring or invoice discounting you are borrowing against the cash tied up in your debtors and paying interest and charges for the privilege. Similarly with stock finance, often only available as part of an invoice discounting facility, you are borrowing against the value of cash tied up in your stock, and again paying high interest and charges for doing so.
Surely before factoring, invoice discounting or raising stock finance, releasing as much of the cash tied up in your debtors and stock first makes sense?
After all, doing so reduces:
- your need for external cash
- the costs (and risks) of relying on borrowing and
- the intrinsic risks of having your cash tied up in debtors and stock?
Lean Cashflow works to reduce the level of working capital needed in your business, making the most out of the cash you already have and so reducing your need for external funding.
To find out more, contact us to request our Free Diagnostic Day.
Or if you are still interested in factoring, invoice discounting or stock finance, contact us to request a Free copy of a 44 page briefing Factoring and Invoice Discounting.