Cashflow: Confidence in Your Cashflow

By Lloyds TSB Commercial

Unpredictable cash flow can be one of the most common barriers to growth.

As raw material and product costs fluctuate and you strive to get paid on time by suppliers, confidence that you have access to funds is crucial to maintaining stability and achieving future success in your business.

As well as approving eight out of 10 requests for loans and overdrafts*, Lloyds TSB Commercial also has a number of options designed to ease cash flow pressures and keep your finances fluid.

Manufacturing, which in 2009 was the third largest sector of the UK economy and employed 2.6 million people, is an industry where businesses simply cannot afford to see cash flow run dry.

One option used by businesses facing this issue is factoring, or invoice discounting, which allows you to secure funds against the value of invoices – ideal when you know you have orders in the pipeline but need funding to pay for production.

In many cases you can receive up to 90 per cent of the value of your invoices within 24 hours of raising them. A significant help when many customers are stretching payment terms to the limit.

For other businesses that also have a solid base and have invested in infrastructure designed to help them compete and grow, asset finance may help. Offered by Lloyds TSB Commercial Finance, capital is released by borrowing against the value of your fixed assets, such as property and equipment. 

Of course, not all businesses own their premises or have the same tangible assets as manufacturers.

The tourism sector, for example, generates around £115 billion a year in the UK, much of it seasonal. This seasonality creates cash flow peaks and troughs, meaning that while significant costs such as marketing may need to be paid for in the ‘off season’, the bulk of income arrives in the peak holiday seasons, creating gaps in finances which firms have to bridge.

When this kind of cash flow gap appears there is a different option for smaller amounts, where businesses might take payments by credit/debit card with minimum monthly takings of £3,500.

Companies in this position can take advantage of Lloyds TSB’s Cardnet’s partnership with Merchant Cash Express. This service offers a business finance advance which gives smaller organisations access to an injection of cash when they need it most, without the need for additional security or approvals. They simply pay the amount back out of future card transactions which are collected automatically on a daily basis.

However strong your cash flow feels now, you can never fully anticipate every issue which might disrupt it. Having a plan for which option suits you best if you do experience a shortfall can save valuable time and help you focus on keeping your business on track.

For more information about how Lloyds TSB can work with you and your business, please contact your Relationship Manager or visit

To find out about factoring or invoice discounting visit

*Figures relates to March 2010 to February 2011

Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment.

Factoring and Invoice Discounting facilities are provided by Lloyds TSB Commercial Finance Limited. When using these products and services your agreement is with a Lloyds Banking Group company whose terms and conditions will apply.

Lloyds TSB Commercial Finance Ltd. Registered office: No. 1, Brookhill Way, Banbury, OX16 3EL, Registered in England and Wales no. 733011.

Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M.

Authorised and regulated by the Financial Services Authority.

We subscribe to The Lending Code; copies of the Code can be obtained from

Cashflow: Confidence in Your Cashflow

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