Are you dealing with the five most common cashflow challenges? Invoice Finance can help minimise the impact.


Five common cashflow challenges and how Invoice Finance can help

Are you dealing with the five most common cashflow challenges? Invoice Finance can help minimise the impact.

The current economic climate is creating a high degree of market uncertainty and in times like these, the long-standing phrase ‘cash is king’ cannot be overstated. Having cash at hand provides businesses with the financial headroom required to ride the economic waves and manage risks, while also facilitating the flexibility required to seize growth opportunities. However, maintaining a healthy cashflow can be difficult to achieve. Businesses don’t necessarily fail because they aren’t profitable, rather they fail because they don’t have enough cash at hand to cover their operating expenses. 

Invoice Finance can help shield your business against cashflow shortfalls. Unlike a traditional bank loan which is a pre-agreed amount of funding based on historic performance, with Invoice Finance you are releasing the funds tied up in the invoices you raise so the amount of funding is in line with how your business is performing.  It means that you can access the monies owed to you instantly so that you have the cashflow available to meet expenses rather than waiting 30,60 or 90 days for customer payments.

Every business can work to put in place some measures to address the common cashflow “enemies” that cause cashflow challenges but having access to a funding solution that supports cashflow can be invaluable.  The team at Pulse Cashflow have compiled the five most common cashflow challenges and how using an Invoice Finance facility can help your business to overcome them.

  • Late payments

Despite efforts to eradicate the growing trend of late payments, it remains one of the most pressing issues facing UK businesses today. Not only does it create a "funding gap" and significant liquidity issues, but chasing late payments also adds an administrative burden. Invoice Finance allows you to resolve cashflow issues arising from late payments by receiving an advance payment of up to 90% of the invoice value within 24 hours of the invoice being raised rather than waiting 30, 60 or 90 days for customer payment. Furthermore, the invoice financier will perform free credit checks on all new customers to assess their ability to pay and provide transparency on the risk they pose to your cashflow, helping your business establish appropriate credit terms on that customer that will keep your business protected. 

  • Rapid growth

While the saying "all growth is good growth" still holds true, rapid growth can potentially be the cause of poor cashflow. While increased sales create the opportunity to make greater profits, larger sales volumes require more cash to finance them, and you may not have sufficient capital required to cover the increased costs until you receive customer payment. Invoice Finance is a tailored solution for growing businesses, allowing you to free up cash almost instantly, with a funding line that grows in line with your business’s growth. Our expert team manages your sales ledger and credit control process, and chases payments on your behalf, enabling you to take on new business with confidence. 

  • Long lead times

Certain industries such as manufacturing have to deal with long lead times from receiving a confirmation of order to receiving payment for delivery of completed goods. The impact of long lead times on cashflow can mean that you may not be able to take on new contracts as you do not have the spare cash to purchase raw materials or employ additional employees.  Invoice Finance bridges the payment gap, by releasing funds from invoices as they are raised speeding up access to additional cashflow to help your business seize new opportunities.  

  • Tightening bank funding requirements

During uncertain economic times, history shows that Banks will and are becoming increasingly cautious about exposing themselves to risks in their portfolios, and as a result, bank funding for small and start-up businesses has declined significantly. In line with this, bank interest rates are increasing and have reached a 14-year high of 4%, making the cost of funding an increasing and uncertain cost to a business. Invoice Finance is more accessible for SMEs as it is based on current sales, with a fast and straightforward approval process that allows businesses to quickly access the cash they need. Furthermore, Pulse Cashflow charge a market leading, simple, transparent fee that is unaffected by increasing interest rates, enabling businesses to  budget with confidence.

  • Poor credit control

Effective credit control is vital for healthy cashflow; however, not all businesses have the capacity or need to hire an in-house credit controller; and hence, these tasks are frequently taken on by existing employees who lack expertise in that area. At Pulse Cashflow, as part of our invoice finance solution, all clients can have access to a dedicated credit controller who understands your business and will chase payments on your behalf, with the option of a confidential service so your customers are unaware of our involvement.

Give your business a cashflow boost with Pulse Cashflow

Pulse Cashflow empowers businesses through our range of flexible funding solutions.  Our friendly and personable team work hard to understand the challenges you face to ensure our solutions meet your requirements and help support your business growth. If you think your business could benefit from our funding solutions? Call us today on 0845 539 7003 or email


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About Us

Pulse Cashflow are a leading independent funder specialising in invoice finance who work with businesses experiencing a range of cashflow challenges.