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Cashflow Finance on the curse of overtrading

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The big topic on every business owner’s minds is to beware the curse of overtrading.

This occurs when businesses take on more work than they cannot fund, because typically they are under-capitalised and are unable to negotiate adequate borrowing facilities to fund the growth they are experiencing.

The impact of overtrading can be quite devastating. The order book is full and work is readily available at margins that ensure healthy profits but there is a catch.

The profits generated can become tied up in the debtors and new kit as it takes time for the cash benefit to wash through, whilst in the meantime more staff are required to meet the increased workloads, pushing the day to day cash requirement up.

Cashflow Finance  has all your needs and requirements in assuring that your business does not fall into this trap.

As about Cashflow Finance’s (factoring)or Debtor finance facility, it explain how the purchase order facility can benefit you in the front end of purchases, possibly saving you money and offsetting all its costs.

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