You’ve got big ambitions for your company and have worked hard to build an impressive client base.
As your tech company grows, you’ll take on bigger and bigger clients. Working with well-known companies with plenty of budget and a clear need for IT solutions gives you some cool opportunities. Large software development or IT support projects are your chance to shine.
But, working with large companies also presents new headaches as large corporations are notorious for LOOONNNGGGG payment terms — leaving many UK-based tech companies struggling to cover costs while they wait for payments to arrive.
Research shows that 78% of UK SMEs have to wait 30 days past their agreement terms before finally being paid.
Waiting +60 days for your clients to cough up your cash can seriously impact your company and ability to grow.
So, what do you do when you encounter cash flow problems?
Solutions to Cash Flow Problems for Tech Companies
82% of small businesses fold because of cash flow problems. Falling short on cash can impact your ability to pay staff, invest in your business, buy new software or equipment and even take on new projects.
You need to find a solution before your lack of cash negatively impacts your success and ability to stay open.
While there is a wide range of options for solving your cash flow problems, most aren’t ideal for small businesses yet alone tech companies. You don’t want to build up bad credit by using your overdraft or a business loan over your head when you’re trying to grow your company.
Traditional cash flow solutions often fall short of inspiring.
But, invoice financing may offer the perfect solution as it means you can get your money MUCH quicker and keep building your brand name by working with big clients.
What is Invoice Financing?
Invoice financing allows you to secure funding against your whole book or individual invoices. So, while you wait for payments to come in, you can access the cash you need to keep killin’ it.
Individual invoice financing reduces your risk and commitment. You can also secure invoice financing much quicker than traditional cash flow solutions, especially on platforms like Lendflo.
How Invoice Financing Can Support Your Growth
Solving your cash flow problems once and for all means you can unlock all the great benefits of invoice financing.
Take on New IT & Software Development Projects
When clients don’t pay their invoices on time or have long payment terms, it can impact your ability to take on new work. Research shows that UK small businesses lose an average of £26,000 per year by being forced to turn down work due to poor cash flow.
You can’t attract new opportunities without investing in marketing and business development or take on new opportunities without the right equipment or employees. And, all of that requires having enough money in your bank account.
Invoice factoring allows you to access the cash you need to take on and attract new opportunities while waiting on outstanding invoices. So, you have the funds to seize new business opportunities and continue supporting your existing clients.
Attracting & Retaining the Tech Industry’s Best & Brightest
Software developers, data analysts and IT gurus are in short supply in today’s market.
One survey conducted Harvey Nash showed that 65% of technology leaders struggle to find and think the current skills shortage is hurting the industry.
Finding the right employees is only half the battle. Once you finally manage to find the perfect employees, you need to keep them happy. Within a skills short industry, it’s incredibly easy for employees to find new jobs or get snatched up by your competitors.
Without enough cash, it’s challenging to pay your employees on time. Payroll problems negatively impact employee morale, productivity and even your ability to retain your talented employees.
Plus, platforms like Glassdoor make it far too easy for disgruntled employees to spread the word that you don’t pay wages on time and discourage others from working at your company.
Invest in New Equipment & Software Licenses
As a tech company, you need to have the latest state-of-the-art equipment as well as software licensing. Having the right software allows you to protect customers’ sensitive data, support clients’ IT needs and even deliver new projects or meet emerging market demands.
Late invoices make it difficult for you to cover these essential costs, which naturally impacts the standards of your service and ability to compete against better-equipped tech companies.
Invoice financing eliminates this problem by helping you cover overheads and makes sure you have enough cash to continue investing in your company, like buying that new processor you’ve had your eye on.
Discover Invoice Financing From Lendflo
Say goodbye to cash flow problems and hello to growth.
Here at Lendflo, we want to support your growth and help you take your company to new heights. So, we’ve created an invoice financing solution perfect for tech companies and small businesses. Making it easy for you to eliminate cash flow problems, unlock new opportunities and have the confidence to go after exciting IT projects where you can really make your mark.
Send us a message to learn more about Lendflo or sign-up for a free demo to discover how our platform works.