- 27 Nov
3rd #TalkIF Debate Discussed Growth And Overtrading
The 3rd #TalkIF debate, hosted by RBS Invoice Finance, took place earlier today and focused on business growth. The debate covered whether or not a business should seek to grow in all circumstances and also covered the issue of overtrading. This occurs when a business is growing its turnover faster than it can really handle. This can cause stresses within the organisational structure and with their working capital.
The issue of working capital seemed to be the key concern amongst the participants but there are ways of funding a business that is overtrading. Use of invoice finance means that the working capital of the business grows in line with its turnover. In fact, overtrading is ideally funded with invoice finance, hence why we have found such a high correlation between fast growing businesses and the use of factoring and invoice discounting.