For Fast Moving Commercial Goods (FMCG) businesses there is never a dull moment. With short shelf-lives and fast product sales, managing this high turnover can be fun and rewarding. However, it can also be a challenge, especially when it comes to typically slow-moving finance. So, what can FMCG businesses do to help improve their cash flow and growth? The answer lies in Selective Invoice Finance.
Growing Pains of FMCG Businesses
If you’re an FMCG start-up, then it is likely that your priority is to have considerable shelf-space in the leading supermarkets and retail outlets. However, when you transition from the small-scale retail units to the global players, finance terms become less negotiable.
For the distribution of food and beverage items, you can expect retailers to offer payment terms of between 90 and 120 days. As a growing SME, these lengthy waits for payments can significantly and negatively impact your cash flow. A lack of cash flow can limit your expansion plans and make growing your inventory and business difficult.
However, when your business relies on maximising your shelf space, you can’t let Cashflow difficulties get in the way of growing your food and beverage start-up and landing the big contracts.
Manage Lengthy Payment Terms With Invoice Finance.
At Global Asset Finance Limited, we know all too well the restrictive and extended payment terms that the big-brand retailers impose on start-up FMCG businesses and growing SMEs.
Consequently, this is why we offer an innovative finance solution; Invoice Finance.
Invoice Finance works by providing you with an advanced payment of the invoices you send to your clients (debtors). Your growing SME simply needs to change the bank details on your invoices to your Global Asset Finance Limited partners account and Global Asset Finance Limited will pay you up to 90% of your invoice in advance, so you don’t have to wait for your client to get around to paying you.
Then, when your client pays the invoice, Global Asset Finance Limited and its partners will release the remaining funds from the invoice, minus any fees.
With Invoice Finance, your food and beverage start-up can enjoy a healthy Cashflow that can facilitate growth and help you to land bigger and better contracts with leading retailers.
Furthermore, you don’t have to let a client’s restrictive and lengthy payment terms restrict your working relationship and allows you to grow your business and assist with new clients and Cashflow for your ever expanding business.
How Invoice Finance With Global Asset Finance Limited Can Help?
If you want to unlock the potential of your FMCG business through innovative Invoice Finance solutions, then get in touch with Global Asset Finance Limited to find the best solution for your business needs, to help with your company’s growth.
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