cash management

3 Critical Key Performance Indicators (KPIs’) to use in your Business

3 Critical Key Performance Indicators (KPIs’) to use in your Business

KPIs’ (Key Performance Indicators) are set up for absolutely anything these days from measuring SEO performance to customer satisfaction and it’s easy to get submerged in a sea of indicators. Everyone talks about them and mentions them in such jargon that it is vital to keep a clear head of…

Alternative funding sources for Business – Invoice Factoring

Alternative funding sources for Business – Invoice Factoring

Invoice factoring is a fast way to raise cash by ‘selling’ your invoices to a large factoring company for a fee and who then collect the debts from your customers. It’s different from invoice discounting since the whole credit control function is carried out by the factoring company. It is usually…

Virtues of having a part time Finance Director

Virtues of having a part time Finance Director

Do you really need a full-time FD for your business, even if you can afford one? With all the technology and resources available today, small to medium-sized businesses can easily handle the day-to-day financial management by using cloud based accounting systems and experienced book keepers and accountants. With the daily…

Alternative funding sources for Business – Invoice discounting

Alternative funding sources for Business – Invoice discounting

Invoice discounting is a simple and fast way of raising working capital. It allows you to raise cash up to 85% of your invoice values soon as you bill them to customers and is popular for larger businesses with typically over £1m annual turnover. There are many advantages to this…

Alternative sources of funding for Business – Lease financing

Alternative sources of funding for Business – Lease financing

Leasing is a great alternative to funding your business expansion or equipment replacement programme. Several factors can determine the decision whether to lease or buy and leasing can bring several advantages, which I outline below. 1.  Preserves cash and spreads the cost of equipment over time, usually 3-5 years 2.…

5 Most Common Business mistakes

5 Most Common Business mistakes

Whilst it may seem easy to start a business, invariably entrepreneurs make mistakes, some of which can be fatal to the business. Around 30% of startups fail within the first 2 years and about 50% fail to survive the first 5 years according to US & USA figures on startups.…

Investors’ Jargon explained

Investors’ Jargon explained

  Once you start meeting with investors’, you will find that they and their financial advisers start talking in jargon about your business in terms that may as well be in Klingon. EBITDA, IRR, NPV, leverage, terminal value, net cashflow, free cashflow, blah…blah…blah… Here’s a short explanation of investors’ jargon…

Should you use Budgets in your business?

Should you use Budgets in your business?

Answer – yes and no! Let me explain. The pros and cons of using budgets in business has enough pages written about it for many years. Some argue for and some against. The main arguments for are that businesses can convert their objectives into financial performance targets or annual budgets that…

How to manage your Working Capital

How to manage your Working Capital

What is working capital? Simply put, its the cash required by a business to pay its suppliers, expenses and staff. It goes in a cycle as shown in the illustration above. When you start a business, it will take some time to start making profits and you will need sufficient…