Invoice Discounting Offers Business Cash Flow Life Line

Nov. 27, 2009 - PRLog -- With lack of working capital as a key factor in the majority of business failures, leading independent invoice finance broker Enable Finance Ltd is urging small businesses to address their finances now to avoid becoming another statistic.

Despite insolvency specialists predicting a wave of business failures next year as evidence mounts that the UK is at the midpoint of a W shaped recession in which insolvencies peak once GDP stops shrinking, Enable Business Finance believes there are various options accessible to companies that could forestall them getting into a Company Voluntary Arrangement (CVA) or going into liquidation.

Despite well intentioned efforts by the Government to increase the funding available to small and medium sized businesses including prop up measures such as tax deferments in their Time To Pay initiative. The fact of the issue is that although they may supply a short term cushion against the storm, they are unlikely to be the lifeline that many need in order to continue to exist. As such tax deferments are merely just postponing a cash flow problem today for tomorrow.

Small and Medium sized business owners need to reassess their commercial financing options before they find their usual source of business finance have dried up. Invoice finance and other funding options such as asset based factoring http://www.enablefinance.com/business-finance/cash-flow-i... or confidential invoice discounting can provide a long term viable solution to help businesses improve cash flow and thus their chances of survival through what are very challenging and tough economic trading conditions.

Invoice Factoring works by funding the outstanding invoice due within your sales ledger.g. your unpaid invoices) enabling businesses to meet those vital creditor payments such as PAYE and taxes, not to mention the more obvious supplier payments and of course, sufficient funds to meet salary and wage roll.

The Finance & Leasing Association (FLA) has recently announced that access to credit is still tight for most borrowers, and it’s clear that businesses need access to fast, flexible and effective cash flow solutions that positively impact upon the firm’s liquidity. Therefore guaranteeing they are still trading and in a position to take advantage of the economic recovery when it comes.

Small to Medium sized business owners will notice that the Asset Based Lending industry has an open minded approach to financing their business http://www.enablefinance.com/business-finance with solutions such as invoice finance.  Unlike traditional banks, which can be inflexible and often take a one size fits all approach, alternative funding providers typically take a much more in-depth view of a business and take into account the entire financial picture when making a funding decision.

Business owners should take a stark warning from the Governor of the Bank of England in his comment; "The UK economy has only just started along its road to economic recovery" and properly examine if their company is adequately funded. The Bank of England in its last Consumer Prices Index report stated that the UK will have slow recovery and not be in a state of prosperity until late 2011. This once more further highlights the time scales concerned.

Enable Finance Ltd are eager to talk with business owners and Directors about which alternative sources of funding are available to them and their specific business. It should also be worth noting that even if a Company is facing insolvency proceedings or have been threatened with a winding up petition. The specialist business finance advisors may still have a solution and indeed help clear up the impending creditor pressure.

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Enable Finance provide http://www.enablefinance.com/business-finance/cash-flow-invoice-finance Invoice Finance and cash flow solutions to Businesses. Enable Finance have been established since 1997 and have been giving http://www.enablefinance.com/business-finance business finance advise to a broad range of SME’s looking to grow and develop their business.