Scaling up – without growing pains
Are you thinking about scaling up your Small and Medium-sized Enterprise? We’ll take a look at some options that may work for you in the wake of a difficult economic time, and how GRENKE can help take the pain out of the process.
Scaling or Growing?
Growth is one of the most important requirements for a Small and Medium Enterprise (SME) today. In most cases, it is equally important to look at scale – and they’re not quite the same thing. Generally, business growth is something looked at in linear terms, where a company adds more resources and the revenue increases as a result.
However, scaling is when revenue increases without a substantial increase in resources. For example, email marketing where the effort involved in sending an email to 10 or 10,000 people is not significantly different. We are looking at how a business can recover and grow exponentially.
Invoice finance can help secure the scale-up SMEs are looking for, in returning to normal business activity.
This will bring your business back to financial health – but don’t rush, it’s vital for SMEs to look at rebuilding a strong financial base, with working capital in the bank. This is a challenge while funding daily operations within the business and consistent cash flow is key.
A solid base
When an SME builds up strong cash reserves it is then in the best position to grow consistently and quickly. Beware of adding new resources, whether capital, people, or technology, to increase revenue and drive sales and development. This may result in an increase in activity, costs, and productivity but without consistent cashflow.
This is where an invoice finance company like GRENKE can help. Within a very short period of time, perhaps as little as 24 hours, they will pay up to 90% of the invoice value. This allows you to secure those payments while building your cash reserves for future projects.
Sustaining constant growth can be a real drain on resources. This highlights the key difference between growth and scaling – scale is only achieved by increasing the revenue without incurring significant costs.
Invoice financing is a remarkably cost-effective way of securing cash flow. Your SME no longer has to allocate valuable internal resources to chase payments. Instead, a professional receivables management team takes on the task of securing payment from debtors while you pay a fixed fee.
Using invoice finance is an opportunity to see your sales activity rise, without the usual administrative costs.
GRENKE helps you grow
It’s a given that as your business grows, so does its cash flow. Invoice financing stands out from traditional cash flow solutions in the flexibility it offers.
Unlike traditional cash flow solutions, invoice finance has a proven elasticity. For example, you may treat your debtors in different ways – you might be happy to wait for payment on some invoices but not on others. Invoice financing with GRENKE allows you to select the specific invoices or debtors you want to finance and work with us to find the perfect balance for your business. We offer a modular product line that gives clients the support they need.
At GRENKE we offer an exemplary invoice finance service that has simplified approval, free credit checks on debtors, expert, and professional receivables management and the vital cash Irish SMEs need to scale up. Don’t delay. If you are looking for finance to scale up your business.
Talk to GRENKE today!
As one of the leading financial service providers in the Irish market, GRENKE’s slogan is ‘Fast, Forward, Finance’. GRENKE offers entrepreneurs fast and flexible financial solutions through a range of services including leasing and invoice finance. We match the perfect financial solution to your unique business needs, from small businesses to large enterprises.
Over the last 40 years, GRENKE has provided leasing to numerous styles of businesses and organisations; sole traders, partnerships, public and private limited companies, associations and organisations, medical, health, and educational providers, municipalities, public hospitals, semi-state institutions, Government bodies and so much more.
Our expertise and strong market position are no coincidence. If you are a business owner looking for financial solutions in Ireland or advice on fast and flexible financing, talk to a GRENKE Account Manager today.