Last night I attended one of the regular meetings of the local Shopfitters Association and as expected, the current state of the retail sector was a major talking point. One of the other key themes that came up from the small business people who are members is that cash flow is very tight in the sector due to the nature of the customers who have work to give them at the moment. There are big retailers who are upgrading stores and they generally have 30-60 day terms; others work for builders and construction companies who also tend to have payment terms that are 30-45 days from the end of the month in which the invoice was raised.
Shopfitters are increasingly turning to specialists in the invoice factoring sector, largely because bank credit is not available to SME’s in their industry. By using a factoring or invoice discounting facility, they can convert invoices on payment terms into cash that can be reinvested in the business or just to pay staff and suppliers.
As big companies continue to extend payment terms, smaller businesses will need to find a way to bridge the time frame between when they pay for their materials and when they get paid for the work. More and more jobs are going to tender where the payment terms are set by a big company with little opportunity to negotiate. Shopfitters will have two choices in this situation – take the work and line up an invoice factoring solution…or, turn down the work and hope to find work from somewhere else.
Thanks for providing this entry. It is really helpful for me.
you’re truly a excellent webmaster. The website loading pace is incredible. It kind of feels that you’re doing any distinctive trick. Furthermore, The contents are masterpiece. you have performed a wonderful job in this subject!
Whats up very cool web site!! Guy .. Excellent .. Amazing .. I’ll bookmark your site and take the feeds also…I am satisfied to seek out so many helpful info right here in the post, we need work out more strategies in this regard, thank you for sharing. . . . . .
I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my view, if all web owners and bloggers made good content as you did, the internet will be a lot more useful than ever before.
You must take part in a contest for among the finest blogs on the web. I will suggest this web site!
Way cool! Some extremely valid points! I appreciate you writing this article plus the rest of the site is also really good.