Cashflow Implications When Scaling up Your Business


Things are now starting to look up for SMEs, following the long period of tough trading conditions during the pandemic. One encouraging sign is an increase in the demand for a company’s services or products.

Although, it is worth bearing in mind that pursuing new commercial opportunities can sometimes result in a negative effect on cashflow with cash getting trapped in working capital or required for capital investment, meaning business owners need to plan accordingly. Therefore, in order to scale your business may have a borrowing requirement.

We are regularly asked at BSN what funding is available to business owners, so we thought we would show you in an easy to digest infographic:

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Some common questions we ask clients about understanding their business and cashflows as they are growing:

  • Do you prepare regular management accounts and reporting information?

  • Do you have a 12 week rolling cashflow showing the expected incomings and outgoings of the business?

  • Do you prepare budgets and forecasts for the coming 12 month period to help make strategic decisions?

If the answer to these questions is no then we can help you. We would always recommend preparing good quality information before making any lending decision. After all its no good going back to the bank when you’ve borrowed too little money to achieve your aims to find a closed door.

Consistent, timely and effective financial reporting will make a lending decision much easier for any lender and help your application get through credit approval. Give us a call today if you need help looking at your borrowing options.

Mooch Development