The relentless pursuit of sales growth is universal. Yet success on a big scale often seems improbable, a mere fantasy. So improbable that the awkward questions about how to satisfy escalating demand can go ignored.
Problems
Yet these questions must be dealt with. Why? Because sales growth needs cash. For example, it often requires money for additional materials and new equipment. It might demand funding capital for larger premises to house manufacturing or stock. It’s likely to need greater cash flow to pay more staff. And the money for everything must be available well in advance of the sales income you’re anticipating.
The reality is you could find yourself scrambling for money to finance your expansion.
So what’s the answer?
Solutions
The first step is planning – looking ahead and projecting figures. For example, you could anticipate a tripling of sales from $100,000 to $300,000. So ask yourself:
- What volume of raw materials will be needed?
- How many finished products will be sold?
- When will you be paid for those sales?
- What happens if you don’t get paid?
When you’ve answered all these questions you’re ready to consider how to fund it.
Trade Finance (both Domestic and International) can help you buy stock and provide you with credit of up to 90 days.
Debtor Finance allows for the drawing down of cash against outstanding and overdue invoices. It can reduce the risks involved with non-payment.
If you have a vision to expand via increased sales, don’t ignore the need to put the money in place. Apply for financing well before you need it.
Searching for the right facilities if customers suddenly don’t pay when ready cash is needed causes unwanted stress and pressure. And that can lead to rash decisions and costly errors.
When your hard-earned success comes knocking, make sure you’re ready for it. A conversation with your accountant is the easy first step. We’re here to help, call us without delay.