Just Cashflow: A lack of knowledge can set alarm bells ringing

Commercial lender Just Cashflow launched in the UK earlier this year and primarily provides growing businesses with a flexible finance facility...

Marketing Director John Davies reflects on his experience to date.

What has and hasn't surprised you since opening for business?

What hasn't surprised me is the substantial demand for finance from businesses keen to grow and invest. It's well documented that the traditional Banks aren't fully meeting this demand and there has been a healthy increase in the number of alternative lenders attempting to fill this gap.

It is surprising that many growing businesses simply don't approach the traditional Banks as they perceive the answer will be 'No'.

One of the first questions we ask a prospective customer is have they approached their Bank as this, in most cases, will be the best option for them. However, it is clear that alternative lenders provide a much faster solution and are geared up to understand small businesses.


What could businesses keen to grow do to help themselves?

We have a higher turndown rate than we expected and one of the key reasons is owners not fully understanding their own businesses and expansion plans.  Today, a key part of our underwriting involves understanding how well an applicant knows their business, financial position and future plans. If someone can't tell you the difference between a P&L forecast and a cash flow forecast it sets alarm bells ringing.

Over 30 years ago when I ran a number of growing businesses I would have benefited from a better knowledge of key business fundamentals, especially how managing your cash flow is all important.

Nothing much has changed and it would really help to have a national, University led qualification for potential Directors that includes:

* Employment Responsibilities

* Finance

* Sales and Marketing

* Role and Responsibilities of Directors

* Planning

The best businesses are on top of all of this and, of course, well positioned to become much bigger ones.