A Cornish firm of independent financial advisers has noted an increase in the number of businesses turning to asset financing and invoice factoring to help cashflow over the winter months.
Worldwide Financial Planning, which has offices in Truro and Wadebridge, believes the increase, particularly in the hospitality industry, is down to the impact the poor weather had during the summer.
Rebecca Bendle, commercial financial adviser at Worldwide Financial Planning, said: “Christmas is a time of year when businesses, particularly those in the hospitality sector, can be affected by poor cashflow.
“Hotels or holiday parks that are either closed, or have low numbers of guests, can be impacted in particular.
“It has the potential to prove to be even more difficult this year after the poor summer hit visitor numbers. When you consider the weather we’ve had for the last two or three years, it all has an impact over the winter.
“But, there are ways of overcoming the cashflow issues, including invoice financing and asset financing.”
Asset financing allows businesses to use existing assets as security for purchases, such as machinery, equipment and computers.
Invoice factoring allows a business to raise money against its debtor book. It’s possible for the business to raise up to 85% of the value of existing invoices and receive the money within 24 hours.