Flexible Invoice Discounting (FID)
As a growing cosmetic company, you don’t know where and when the big sales opportunities may happen. All it takes is a YouTube star singing the praises of your products, an Instagram influencer showing off the benefits of your cosmetics or a successful trade show meeting with a high street retailer and the orders will come flying in.
Understandably, you will want to make sure you can embrace all of the opportunities that come your way, however quickly or unexpectedly they happen. However, your working capital may not be quite as flexible as you are when it comes to maximising opportunities, expanding the business or boosting your inventory.
The Benefits of Flexible Invoice Discounting
Fulfil Substantial Orders
If a big order comes in, you want to be able to meet and exceed your client’s expectations. However, in order to facilitate a big order, you need the working capital available to pay your suppliers, employ staff and fulfil your requirements.
Flexible Invoice Discounting can allow you to draw down from invoices you have sent your clients without waiting the lengthy payment terms for your debtor to pay. This can boost your working capital, allowing you to create and dispatch the order.
Take on more Clients
While smaller retailers will often pay their suppliers quickly, large retailers often rely on lengthy payment terms which can extend beyond 90 days. If a large proportion of your clients adopt lengthy payment terms, you may feel that you do not have the cash flow in place to take on more clients with similar invoice rules. However, with Flexible Invoice Discounting, you can access the money from invoices when you need them, without worrying about when the client will pay.
Grow and Expand
For any business, especially cosmetic brands, it is important to strike while the iron is hot. This means growing your range and boosting your marketing while there is a buzz around your cosmetic brand. For this, you will need the capital in advance and often long before your invoices are paid. Fortunately, with Flexible Invoice Discounting, you can boost your cash flow when you need it, as long as you have outstanding invoices that clients need to pay.
Make sure your business can capitalise on every opportunity without cash flow problems getting in your way. Find out more about our Flexible Invoice Discounting solutions by speaking to a member of our team.