As an engineering business it is common to face cashflow challenges when looking to grow. This will include potential customers expecting some form of credit such as payment terms of 30-60 days. By releasing funds in outstanding invoices, the immediate cash injection will allow your business to continue to trade without the concern of funding larger or new projects. Invoice Finance providers will always help you credit check potential customers to ensure you are offering a sensible level of credit to each client. This is how it works:
Many Engineering firms will need to use specialist equipment and machinery to fulfil their orders. For growing companies additional machinery may need to be purchased or even upgraded to improve efficiencies. Asset Finance will allow you to purchase a variety of equipment and machinery and allow you to spread this cost over an extended period of time. This will allow your business to not have a significant upfront cost which could hinder your businesses working capital cycle. If a cash boost is required and your business already owns unencumbered equipment and machinery you may even be able to re-finance these assets for instant cash. You maintain ownership as long as you can keep up with agreed repayment terms.
