The Interface Financial Group (IFG) provides financial resources (spot factoring, invoice discounting) to clients in over 30 industries. With over 150 offices and over 40 years of experience, IFG is ready to meet your short-term financing needs. We service companies in the North America, Europe, Australia, New Zealand, South Africa and Singapore.
Working capital is the cash necessary for a company to keep its doors open, the business running smoothly, while meeting its financial obligations and funding growth.
Positive cash flow is what creates a company's working capital along with investor money and bank loans. When more cash is coming in than going out there is a positive cash flow. When more cash is going out than coming in, cash flow is described as being negative. Ideally, a business experiences positive cash flow and is thus able to satisfy its working capital requirements.
Does Your Business Have A Cash Flow Problem?
It is not enough for a business to be profitable on paper if there is not enough cash on hand to pay the rent, payroll, suppliers and other obligations the business can't run smoothly, order fulfillment may be delayed, production runs disrupted and growth slowed. To be sustainable, a business must have positive cash flow more money coming in than going out. If business is good but the company struggles every month to pay its bills--chances are the business has cash flow problem.
What Is The Cause Of Your Cash Flow Problem?
If you suspect cash flow problems may be hurting your business, it is important to determine the cause of the problem. Shown below are the primary factors that impact cash flow the life blood of a business in either a positive or negative way.
How Do You Solve Your Cash Flow Problems?
The calculator below can help identify the impact that inventory, profit margin, accounts receivable, accounts payable and growth rate have upon your cash flow needs. By entering current and projected figures for your business, you can accurately forecast your monthly cash flow needs, determine potential cash flow binds, and develop strategies to mitigate cash flow problems.
Once you run the figures through the calculator, you will identify potential cash flow problems and learn how much additional cash your business needs to operate successfully. If you determine you cannot solve your cash flow problems by renegotiating terms with suppliers, shrinking inventory, increasing profit margins, slowing growth, or convincing customers to pay more quickly, you should look for an external source of cash to resolve the problem. If acquiring new debt by taking out a bank loan is not an acceptable solution and you give your customers credit terms, then spot factoring may a solution to your cash flow needs.
The Interface Financial Group's invoice financing service speeds up your cash flow by speeding up payment of your receivables. The slower your customers pay, the more spot factoring speeds up the payments to you.
In most occasions, this flexible financial solution turns the bulk of an invoice into cash within 48 hours of invoicing. The approval process is quick, the fees charged are small, and there are no minimums or maximums, making The Interface Financial Group's working capital solution an elegant choice for the growing B2B enterprise.
One common misconception about factoring is that it is expensive. In some cases this can be true but on many occasions it proves to be less costly than the alternative. The IFG Financial Calculator below will calculate the cost to you of obtaining working capital funding from The Interface Financial Group. In many cases, your monthly accounts receivable, when converted to cash through factoring, can solve your cash flow problems and provide your business with the necessary working capital for your business to continue running smoothly and keep growing.
While every business is different, the fundamentals of working capital requirements remain constant without adequate cash flow, a business will flounder no matter how profitable it appears to be on paper.
We invite you to use the calculators in this article to investigate your own company's cash flow requirements and see how the ability to turn your receivables into cash within 48 hours can impact your business' growth rate.
If you are interested in The Interface Financial Group's factoring solution for working capital requirements and cash flow problems please fill out the form below.