Whether you are a large roofing organisation or an SME, business growth has its challenges. For any business to grow and flourish, it needs to be appropriately financed along the way. Of course, this is crucial at the outset of any company’s journey, but even when a business is up and running and operating successfully, management will need the assurance that future plans for growth can be financed; and let’s not forget the ups and downs that may come your way, where adequate financial support can provide that much-needed support cushion.
Where to go and who to turn to is often the question for many companies looking for financial help and advice. As traditional methods of finance may not always be available or affordable, it pays to consider the financial services provided by roofing specialists such as SIG. With a full understanding of the complexities of the roofing business, SIG has carefully selected independent third parties to provide a range of financial services without profiting from commission. So, now you can access discounted rates of finance and enjoy privileged access to business enhancing products with complete peace of mind.
So, whether you’re a fresh-faced start-up or an established roofing entity, let’s look at how you can unlock the potential of your roofing business and best navigate your way to successful growth.
Long-term and short-term finance
As a business expands, it’s likely that further follow-on investment is required to enable it to move to its next stage. Thinking of a large contract up for grabs in the near future? To secure it you’ll need to know that you can afford to service it properly, e.g. with stock purchases or an increased marketing budget.
Waiting for customers to pay can prevent you from investing in growth. Imagine being able to get advances on cash due from customers rather than waiting for those customers to pay. Now you can sell specific invoices as and when you choose and obtain better cashflow when needed. You only pay for the money borrowed and for the period you need it, with no additional charges.
Reserve cashflow is essential for outgoings such as staff wages and tax obligations, which will only increase as the business grows. Be prepared for the times when you may need to swiftly increase your overdraft to help you overcome a cashflow hump. Traditional banking finance in the form of loans isn’t always an option for smaller roofing companies as they might not be able to generate regular revenues to repay the debt.
Asset financing: Looking to add extra machinery or equipment to your operations so you can manage an expected increase in demand and keep up with the latest technology? Getting the best deal on any purchase is paramount, and of course you will want to spread payments over time, especially if the business is in the early stages of growth, as well as reduce as much risk as possible. Asset finance options can be confusing, but thankfully, independent financial brokers that specialise in the construction industry can give you the low down on the best products available, who to use, and how to secure the best rates.
Managing customer risk and cashflow: Wouldn’t it be great if you only ever acquired the most profitable customers while minimising risk? Now you can, thanks to a software product that not only provides instant risk analysis of customers, but also provides additional credit management tools to manage customer invoices owed, thereby helping you increase your cashflow. These are ideal for SMEs.
Reducing poor payments: Bad debt is always a concern. However,