Cash Flow

Businesses can survive without making a profit. According to The Economist (6th April, 2006, Last Tango in Detroit), General Motors, one of the world's largest companies, loses about $1billion every month. The reason General Motors survives and some profitable businesses go to the wall is cash flow. It doesn't matter how much profit you post at the end of the year, if you don't have enough cash to pay your VAT, income tax, rent, wages, overdraft fees, mortgage payments and so on, you will be seeking the protection of the bankruptcy courts.

Many of our clients have been in the position that they don't know how they can pay the wages next week but are certain that their customers will pay them in two weeks. Or growing so fast they can't afford the capital investment to meet the demands of new clients. Both of these cases were companies that were the victims of their success not their failure.

You may be wondering how General Motors has survived without filing for bankruptcy. In April 2006 they had a $20billion cash mountain. Though by the time you read this it may well be a small foothill.

Factoring, quite simply, means that you can spend today what your customers have commited to paying you tomorrow. Technically your borrowing is secured against your debtors book or accounts receivable.

Why Factor

Higher Advance Against Debtors

When calculating overdraft facilities, banks typically allow just 30% to 50% against debtors, depending on the individual. Factoring typically advances 75%, whilst invoice discounting can go considerably higher.

No Fixed Limits

Overdrafts always have a limit. Factoring and Invoice Discounting grow as your debtor book grows.

No Personal Guarantee

Personal guarantees are often not required. A warranty against fraud will be required.

Professional Credit Control

Efficient and sensitive to your needs and those of your customers. This will save you time to spend on running your business

Customer Credit Checking

The credit rating of new and existing customers will be routinely checked

Why ICAN Finance?

There are over 70 different factoring and invoice discounting companies: each operate slightly differently. They all have their own likes and dislikes as well as individual strengths and weaknesses.

This makes it very difficult to find the best deal with the right factor for your particular needs. We save you time nd money by using our expert knowledge of the factoring market to bring you the best available deal

Ready To Tackle Your Cash Flow?

If you want more information about how ICAN Finance can help with your cash flow problems or have any other questions don't hesitate to call us on 0845 456 8 999 or contact us online.