- 03 Jul
5 Tips If You Only Have One Customer
Most businesses start with one customer, however remaining reliant on just one customer can have serious consequences, which I detailed in my recent blog post "Help with invoice finance prime debtor problems". Whilst the problem is particularly problematic if you are using factoring or invoice discounting, the risks to your business also apply if you don't use this type of funding.
Consequences Of Having A Single Debtor
The consequences of having a single debtor include:
- Cash flow crisis caused by late payments.
- Potential business failure should the customer fail, change suppliers or dispute their entire debt.
- Lack of security as you are always susceptible to either of the above occurring.
- Failure to grow your business as demand is limited by your customer.
- Potential for IR35 tax issues if you are trading with just one party, providing services such as consultancy.
- Prime debtor funding restrictions if you use an invoice finance company.
I have put our 5 tips if you only have one customer into an infographic which might be useful to any business that is struggling with a single debtor situation.
Some of the suggestions, like "take action immediately", might sound obvious. However, many businesses make good money from their one and only customer, hence they delay addressing the problem until it crystalises. The contingent risk can be mitigated by taking action immediately. If you can't find new customers yourself, consult with a marketing agency who will be able to help.
5 Tips If You Have One Customer
These are our top 5 actions you can take to spread your risk and recruit more customers:
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- 18 Apr
Factoring Advantages And Disadvantages
If you are looking at using factoring as a source of funding for your business, you may be interested to understand the pros and cons.Below I have set out the factoring advantages and disadvantages in simple terms, so that you can make an educated decision.The biggest advantage is the improvement to your company's cash flow. As you raise new invoices to your customers on credit terms, they are...
- 04 Dec
IGF Have GBP30m New Funding Line From The British Business Bank
Hot off the press, we hear that IGF (Independent Growth Finance) have a new £30 million funding line from British Business Investments, which is part of the British Business Bank.The British Business Bank, which has it's headquarters in Sheffield, is a development bank that is wholly owned by the UK Government. It was originally announced, back in September 2012, with the objective of increasing...
- 21 Nov
Business Finance For Startups
I thought I would conduct a small piece of research to find out how easy is it for a new startup to find its way to business finance brokers such as ourselves, that can help with invoice finance products.I used the situation of a company that is highly suited to using some form of cash flow funding - although they may not know the name of the product that they are looking for. The result was that...
- 29 Oct
Free Confidential Advice About Business Problems
If you are having business problems, you might feel that you would benefit from a free discussion, with an expert, in confidence. You could benefit from free advice from external parties that may be able to help.There maybe a variety of different business problems that you are experiencing, but some of the common ones may be a lack of sales, poor cash flow or potential insolvency. In each...
- 14 Oct
Debtor Backed Loan With No Trust Account
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- 12 Oct
Finance Against Fee Notes For Accountants
There is a specialist niche form of finance available to accountants who raise fee notes as they undertake work for their accountancy clients. These notes are not invoices, they are just a record of work that has been undertaken. However, funding can still be accessed against them.Finance can be provided against your "fee notes", raised to keep track of the work that you are doing for your...
- 07 Oct
Cheap Invoice Finance Offer
Our funding partners often come up with invoice finance offers and discounts to try and attract new clients. We have had one offering from one or our partners who is willing to offer a pricing discount to just a handful of new customers each month, in order to help get them across the line and onto their book as clients.This offer hasn't been added to our list at this time as we have only just...