Managing cash flow can be a tricky beast, with no two companies being the same. Having a steady cash flow requires some ingredients such as supplier payment terms, client credit, credit management skills and having appropriate funding facilities that need to be used in the right mixture to end up a success.

Clients may be able to manage one or two of these, according to Lock Finance, who have been helping clients nationwide to grow since 1889.

“Managing just one or two of these may improve your cash flow, but some businesses do not have the option to decide when they pay their supplier, such as overseas vendors who require payment upon order placement, or dictate short payment terms to larger clients, for example, trying this with larger retail chains is tough,” said Craig Brown, general manager of lending.

Therefore, some businesses need to consider what their options are. Even if you or your team has good credit management skills if you cannot influence the terms significantly you will still need to look at financing options.

“Great if you want to use the equity in your home, then the banks will typically jump at helping you, but if you don’t have that equity then your options are reduced but you still do have alternative options.”

It is often forgotten that invoices can be used as security for a cash flow facility and that if you have firm indent orders, then they can also be used as a guarantee of a cash flow facility.

The team at Lock Finance can finance your invoices and also provide an import facility to fund indent orders that allow your business to operate smoothly. If your orders and sales are increasing then with Lock Finance your funding increasing also.

Lock Finance has been financing business in the apparel manufacturing and import/wholesaling industry for many years. For more information contact Craig Brown, 09 375 8502 or