Supporting fast growing businesses

A finance department for fast growing companies

We recently spoke to Lisa Dickson, Director of Caseron, about why her firm does more than just compliance work for clients. Lisa and her team understand the pressures that fast growing businesses face, and what is critical in order to develop. “We are the finance team and FD for many of our clients. And while they’re quite different in terms of their sectors, they all need to have good financial controls in place, timely and useful advice, and careful management around cash and resources.”

Cash flow is a key part of management reporting

Going beyond a normal outsourcing agreement, their advisory role is a natural part of the relationship, so Dickson and her team work with clients and plan for periods of cash constraint.

“The consulting part of what we do is wrapped up in the insight from the management reports that we produce - so we will be looking at, and challenging, clients on price, margins, sales, and purchasing. The decisions to come to iwoca are on the basis of something that we know, rather than something that we are trying to unpick.”

The three critical cash challenges of fast growing businesses

Lisa says three main challenges are common across her portfolio of clients:

Funding projects“We have clients who are building or developing new products, and selling to large companies, especially bespoke technical items. These projects are upfront funded projects, and many use iwoca to finance purchasing the materials, until the client payment comes through.”

Extending credit to large business clients“As businesses develop, they may initially start by selling to smaller businesses that are happy to pay reasonable deposits. As their reputation and success builds, selling to larger clients becomes more complex because they often naturally expect to be able to receive credit, which can make things tight if funds aren’t immediately available.”

Unexpected order flows“There are always variables which are hard to plan for. An advanced delivery date that can come up at relatively short notice, for example. Or receiving an unexpected big order where they may not get the money up front or have the capital available”.

The role of alternative finance (iwoca)

Understanding that cash constraints are usually short term for these kinds of business, the flexibility of alternative finance options ensures that business can continue as usual.

“iwoca is perfect for meeting critical payments. Usually we are looking for working capital for services like payroll, PAYE and VAT payments, as well as a viable option for short term purchasing of materials.”

Cloud tools keeps things simple, quick and effective

Using cloud based tools with clients has its distinct advantages, “It makes the whole process uncomplicated. Topping up is pretty straightforward too, which means we can solve cash flow quickly.”  

And the impact on clients is clear, “It’s allowed them to focus on growth rather than bootstrapping or spending a lot of time and energy trying to find another source of finance, as iwoca is quick and easy."

Find out how to become an introducer to iwoca from our accountants page.