Q. I am in the business of buying and selling garden furniture, working with confi rmed orders from wholesalers and retailers. In order to deliver high-quality products to the UK market while minimising costs, I source items from overseas suppliers. With goods and invoices exchanging hands across the world, I struggle to keep cash moving throughout the business. I spend a considerable amount of money buying goods up front and then waiting to receive payment from customers. What are the options available to help me resolve my situation and keep my bottom line healthy?
 
David Robertson of Bibby Financial Services writes:

Firstly, you are not alone in your predicament. Many owners and managers in the business of buying and selling goods struggle to bridge the gap between paying suppliers up front and waiting for customers to settle invoices. Unfortunately, the cashfl ow headache is made considerably more difficult by the fact that you are dealing across country boundaries.

The important thing to realise, however, is that there are a number of fi nancial solutions available on the market designed to help businesses in exactly your situation. One option becoming increasingly popular with businesses like yours is to work with an invoice fi nancier on a specialist Trade Services solution. This provides a fl exible form of fi nance for businesses involved in the buying, selling and moving of goods.

As well as easing the burden of having to find the funds to fulfil confirmed orders, many Trade Services specialist providers can assist with the purchase of goods by providing you with funding up front to complete them.

Working with an invoice financier also helps those involved in buying and selling goods by providing an ongoing supply of funds against the value of invoices as they are raised. As well as releasing an immediate injection of cash in to the business, it also provides a fl exible form of finance that will grow with your business.

Once you have cracked the fine art of getting your cash fl ow to work for you and boosted your business success, you might want to start thinking about outsourcing the distribution of your products. Some invoice fi nanciers that specialise in Trade Services solutions can also provide distribution services in order to marry your logistics with your financial capabilities to help you ‘buy, sell and move goods’.

As well as helping with the buying, selling and moving of goods across Europe, invoice fi nanciers can also chase outstanding invoice payments on your behalf, eliminating the need to spend precious time on administration and wading through the crosscultural and language barriers over which many international traders struggle.