Working capital: the oil to keep the business running

Invoice discounting can be a useful cashflow source of finance.
Managing working capital and cash flow is a critical concern for all businesses, but especially so for SMEs, and even a fundamentally sound and profitable business can soon run into difficulty through poor cash-flow management.
“If creditors falling due cannot be paid, confidence in a business of modest scale can evaporate quickly,” notes Colm Sheehan, director of corporate finance at Crowe. “Owners can mitigate this risk by maintaining a strong credit policy, having a broad customer base so they are not overly exposed, and leaning into the various funding solutions that are available in the market.”