Rightly renowned for its creative provision of finance – including invoice finance or factoring – the team at Shilling Money has seen more and more small companies struggle with less-than-efficient sales ledgers. Whether caused by a lack of time, planning or specialist experience, the impact on the business’s cash flow can be dramatic.
A business with an annual turnover of £500,000, for example, actually turns over £600,000 when VAT is accounted for, and this equates to £50,000 per month. It their debtors operate on an average of 60 days, this is a huge £100,000 that the business simply does not have, and which they may even need to borrow. And if the average slip is 90 days, then this increases to £150,000!
With effective and efficient credit control this money can be exactly where it should be – in the business’s bank account – reducing cash pressures, and finance costs. In fact, good credit control can sometimes remove the need for borrowing at all.
Meanwhile, the Shilling Support team has been locating and funding target acquisitions for clients, as well as preparing small and medium sized business to grow through acquisition. The team’s bolt-on accounts department and acquisition service has successfully freed business owners from day-to-day accounting and cash flow issues, allowing them to concentrate on developing their business and accommodating the sudden growth that is the nature of acquisition. But the team recognised that there was more that we could do…
And so – whilst our dedicated credit control service has previously been reserved solely for those clients accessing Shilling Money’s invoice finance or factoring service – the great news is that we have now made it available to all Shilling Support clients too!