16th April 2019

Invoice finance for the modern business – SMEs are embracing a new way of working: it’s called a relationship

The expectation of invoice finance as a business function is evolving into something much deeper, it’s no longer just about the money.

SME owners need a relationship based service not a funding arrangement so typically offered by banks and other providers. Invoice finance should be viewed as a consultancy based service which enables expansion and fast growth aimed at long-term, sustainable success.

The harsh truth is that many SMEs in Britain are very poorly run, and this often results in the failure of great business concepts due to cash flow problems. This is where close working relationships with clients are paying dividends (quite literally, to the business owners).

80% of our clients at Optimum Finance now use a full suite invoice finance service, showing this agile and flexible source of funding has overtaken the traditional overdraft as the most popular form of funding for small and medium businesses in the UK.

Gone are the days when SMEs looked to quickly access money tied up in unpaid invoices, they now look for a trusted business partner to work alongside them to advise on long-term strategies that will catapult their turnover exponentially, increase headcount and create expansion opportunities. Mirroring that of an SME relationship bank, but without the higher associated borrowing fees.

The process of running a business has changed in the last few years and the banks have not kept pace with the changes, mainly because of their rigid lending conditions. This has forced entrepreneurial minded owners to seek alternative finance routes to unlock the cash in invoices rather than go through time-consuming and lengthy approval processes for loans, crowdfunding or overdrafts. Striking an advice based relationship with your invoice finance provider from the start can really fuel future growth and success so it’s never too soon to explore all your options. Our hand picked team are seasoned business experts and entrepreneurs themselves so they know what it feels like to be running a company.

And here’s the proof

We were approached by a Bristol-based construction recruitment firm looking to grow its annual turnover from £3.8million to £7million. The recruitment sector in particular has an ongoing requirement for invoice finance as firms need to pay their workforce on time and frequently given the nature of the recruitment sector in dealing with main contractors, sub contractors and labourers across multiple projects.

After using four different invoice finance companies but finding the provision fell short of the business needs, Optimum Finance was able to assist by delivering a full invoice finance facility worth which has enabled the company to pay its workforce each month ahead of receiving payment from their suppliers and crucially, without worrying about cash flow.

This access to cash has enabled fast growth of the business, allowing our client to focus on the day-to-day running of the business, safe in the knowledge that their Optimum Finance account manager is looking after the collection of payments.

A high level of customer service, reliability of credit and unlocking cash flow are all contributing factors to prevent stumping the growth of this rapidly growing business. The peace of mind has allowed them to forge ahead and explore sectors other than construction with the confidence their cash flow needs are being taken care of.

Ready to get on board?

As an independent lender specialising in invoice finance solutions for SMEs, we have noticed a marked rise in clients wishing to outsource all their accounts, credit control and debtor protection to us alongside their lending facility in the last 12 months. Our client referred to above is just one example how over 40,000 UK businesses are looking to flexible lines of finance to meet cash flow, funding and growth challenges.

At Optimum Finance, utilise innovative technology to offer a range of flexible funding solutions, which grow alongside your business. Get an instant quote for the amount of funding you could access by entering your annual turnover into our web app. Products include invoice discounting and factoring that can boost your cashflow and give you access to a dedicated credit control team.

Email or call us to speak to our experienced team of experts and find out how invoice finance could help your business. We pride ourselves on getting things done quickly and providing access to cash within 24 hours of approval. We are passionate about finding solutions and delivering to clients’ needs.