Myself and a few industry colleagues were reflecting recently on how the invoice finance sector continues to hold its place in funding businesses worldwide. Despite the ups and the downs over the decades (as with all forms of finance), it remains an important funding solution in the armoury of clients and Financial Intermediaries as they look to drive growth in businesses and in doing so the economy.
It was an interesting jaunt down memory lane as we wistfully remembered the past and praised the longevity of those still making a difference in a challenging market. It had me reflecting on my experience within the industry. The word “philosophy” was used aimed at myself and Pulse Cashflow during that conversation and as I thought more about it, I realise that philosophy has shaped the way our team approach the way we do business with our clients and intermediaries.
Philosophy I hear you say! Well, the definition of Philosophy is that it is a theory or an attitude that acts as a guiding principle of behaviour. When I thought about this, I recognised that I have always led with a strong philosophy and in my view a successful business is one which embodies a philosophy of their own and one which makes them unique. Previously unbeknown to me, there are four types of Philosophy – one being logic. The word logic has meaning both to myself and the fantastic team here at Pulse Cashflow and it is the principle that we use and have always used in everything we do across our business.
Logic serves as the guiding framework that shapes decision-making, culture, and the overall direction of our business and I believe those who work with us will agree that logic is the overriding philosophy running through every single member of the team. But how does it show up?
We take a logical approach which allows us to make objective decisions based on sound analysis and evaluation of our clients’ situation. It reduces the likelihood of emotional or biased judgements, leading to more accurate assessments of creditworthiness and risk. We can often be heard saying, “it’s the quality of the debt that matters”.
This approach leads to consistency and fairness in our decision-making processes when assessing funding requests and our stakeholders really appreciate it as it enhances transparency and builds trust as they can understand the rationale behind our funding decisions.
It also enables us to make fast decisions – be that a yes or a no. As the MD, I’m actively involved in the business and easily accessible should the need arise.
Clients and risk
Our clients are always at the heart of everything we do. Understanding and fulfilling their needs is at the top of our agenda. We have always applied logic to prospective deals that come our way and take the time to get to know how our clients work, their challenges and what they need before working on a solution. A logical approach helps us identify and mitigate potential risks effectively ensuring we make informed and ethical decisions on funding opportunities.
As a result, I believe we have earned a reputation for delivering pragmatic solutions to client situations whilst ensuring transparency to both client and their financial intermediary on what is possible. It helps us to deliver value where others can’t,
A logical approach instils confidence in clients and introducers. When Pulse demonstrate a thorough and logical evaluation process, clients and intermediaries can feel assured that funding decisions are based on reliable and fair criteria. This can help us attract more clients and foster long-term relationships built on transparency and trust.
It makes logical sense to want and need your clients to succeed. Our funding solutions are designed to give them the best chance to do that by giving them financial sustainability. We don’t want to take on a business only for it to fail shortly afterwards. The resources that this takes could be directed to helping clients who have viable businesses where a flexible funding solution can help them to withstand economic challenges. Making a difference to their business growth and their long-term profitability is what motivates the team at Pulse.
Continuing to innovate
We enjoy the full support of our parent – Cubitt Trade Holdings – and in recent years have invested in evolving our offering to further support our clients. The introduction of Invoice Discounting and Trade Finance as well as our Back-Office and Funding solution for the recruitment sector (through our sister company Pulse Outsource) have widened our market and the clients we serve.
Our core business remains in the £2m to £25m turnover market but market dynamics are changing, and we continue to explore new opportunities where we can offer facilities of up to £5m. The biggest difference is our ability to support larger businesses throughout their supply chain where we are making a difference to a wider cross section of clients than ever before. We recently supported a southeast based business with a £6.2m Confidential Invoice Discounting facility coupled with a revolving stock finance facility to help them capitalise on the opportunities they had. Our parents support and resources are helping us to seize new opportunities, whilst staying agile and competitive in a rapidly evolving marketplace.
So, what’s your philosophy to doing business? One thing to remember is that once you know what it is, it will provide a framework to follow but its effective implementation that is equally crucial. Aligning your philosophy and actions, commitment from leadership and a supportive culture are essential for translating philosophy into tangible business outcomes and the likelihood of long-term success and resilience in the financial services sector.