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Invoice finance, also known as factoring or invoice discounting, is a popular method of raising working capital to improve cashflow. It works by converting outstanding sales invoices into cash.
Most manufacturers sell on credit terms, sometimes giving their customers as much as 120 days to pay. This certainty that they will get paid in the future is an asset, and as such it is convertible into cash. It’s estimated that at any point in time, up to a quarter of a manufacturer’s turnover is tied up in unpaid invoices.
Invoice finance is the mechanism for converting unpaid bills into immediate cash. There are various forms of invoice finance available, including selective invoice finance and confidential invoice finance.
British manufacturing is known for its innovation. What many manufacturers themselves don’t know is that they can be rewarded for that innovation.
The reward is in the form of tax credits given for research and development. Every year thousands of UK manufacturers, including many smaller companies, make a claim. For many the value runs into tens of thousands of pounds.
This is cash that you don’t have to pay out as tax, but get to keep as working capital.
Many firms make the mistake of assuming their R&D work doesn’t qualify for this scheme. We recommend that you speak with a tax credit expert - you may be very pleasantly surprised!
We help manufacturing businesses that want to grow raise the funds they need to succeed in their goals.
Our team of finance specialists works with around 250 business finance providers, many of which have a funding solution suitable for manufacturers. Our role, as finance brokers, is to match their products with your situation.
Whether it’s tax credits, invoice or asset finance, or a loan that you’re looking for, we have the knowledge and experience to support your application.
Don’t allow a lack of working capital to hold your manufacturing business back from growth. It costs nothing to speak with our team to start exploring your options. Give us a call today.
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https://www.firstcitizens.com/commercial/insights/finance/manufacturing-financehttps://cdn2.hubspot.net/hubfs/728233/Guide%20to%20Manufacturing%20Finance.pdf?__hstc=260381586.06dd9b4c10065b9f7ec2f70d598672f9.1639732593155.1639732593155.1639732593155.1&__hssc=260381586.1.1639732593155&__hsfp=69968024
As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients.
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