Relieving the pressure points on a company’s cash flow could promote sustainable commercial growth and enable potentially lucrative opportunities to be explored, according to a senior business banking figure at Clydesdale Bank.
Neil McCluskey, managing partner at Clydesdale Bank’s Reading Financial Solutions Centre (FSC) believes the ability of a company to free-up immediate cashflow could be one of the most important steps to ensuring sustainable future business growth, whether this is employing new staff, expanding premises, buying new equipment or developing new products.
McCluskey said: “Easing the pressure on cashflow is one of the most significant moves a business can make. It doesn’t necessarily mean more cash in the bank, but it can afford a business the chance to pursue quality opportunities it might otherwise have been unable to realise.
“In the current climate many businesses want to be able to trade comfortably within their means and at the same time still retain the flexibility to pursue opportunities that could potentially deliver real commercial growth and help them secure their future.”
His comments come following recent research by Clydesdale Bank which found that the key priority for business managers and owners in the next 12 months will be cashflow management. Around 47% of businesses in the south east questioned said the careful management of finance, expenditure and cashflow would be their top priority for the year ahead.
McCluskey continued: “While the timing won’t be right for every business, strong businesses which have been able to withstand a challenging economic climate may increasingly see the ability to reinvest cash as a key catalyst for growth.”
In response to customer research and feedback, Clydesdale Bank recently launched its Investing for Growth support initiative to help well-performing UK trading business take advantage of quality growth opportunities.
Loan repayment holidays, interest-only repayments and extended loan and credit facilities are just some of the flexible support options available under the Investing for Growth, initiative that also includes a dedicated financial planning service.
Business customers who take up the offer will be encouraged to invest the cash back into their business in the form of expansion, new staff, equipment and machinery, and product development.
McCluskey added: “The type of support a company needs is not one-size-fits-all and nor is the time when it may be needed. Every business needs to consider whether the time is right for them and what might help them achieve sustainable future growth.”
Investing for Growth was launched to support Clydesdale Bank’s £10 billion gross new lending commitment by October next year, and is specifically targeted at UK trading businesses.