By James Bingham and Leanne Dawson, Pathfinder Invoice Finance
The central tenet of the FCA’s Consumer Duty is to achieve beneficial customer outcomes. However, it is critical that SMEs that are not subject to the rules benefit from these fundamental concepts as well. This approach, when implemented properly beyond mere rhetoric, creates trust throughout the financial ecosystem, ultimately leading to enhanced business confidence.
The Funding Matrix below operates on four fundamental pillars: less cost, more cash, less security, and more service. Each quadrant represents a vital part of an SME’s funding strategy, and finding the optimal balance between these elements can open up outstanding opportunities for positive customer outcomes and growth.
Less Cost
This quadrant focuses on utilising cost-effective funding sources through extensive market knowledge and streamlining processes via technology, accelerating cash flow.
More Cash
Cash flow is the lifeblood of any business. The ‘More Cash’ quadrant within the Funding Matrix highlights the significance of maintaining strong liquidity and gaining access to working capital to capitalise on emerging opportunities, weather market fluctuations, and navigate unforeseen challenges.
Less Security
The ‘Less Security’ dimension encourages businesses to explore and secure funding facilities that involve no or significantly reduced personal guarantees.
More Service
The ‘More Service’ section emphasises the importance of matching funding options with customer needs, in addition to providing added value beyond the initial transaction, such as bespoke solutions and personalised support.
Striking the right balance among cost, cash flow, security, and service combined with the pace of deal delivery enables businesses to achieve sustainable growth while delivering value-driven customer outcomes.
Pathfinder Invoice Finance is the only UK Invoice Finance brokerage offering Accounting Integration Software that accelerates the funding journey, ensuring swift approvals. Pathfinder recently enabled MCO Building Contractors to swiftly transform cash flow, expand geographical reach, and invest in the future, while balancing every facet of the Funding Matrix.
Emily Bradbury, Business Development Manager at MCO Building Contractors Ltd, said: “Pathfinder understood the urgency of our cash flow issue and expedited the entire process within just ten working days. The invoice finance facility from Pathfinder has provided us with the capacity to expand. We’re confident that the new funding package will give us a platform to achieve the next stage of growth.”
Samantha Wilson, Regional Managing Director at 4Syte Limited, added: “Pathfinder is unique for being able to present lenders with a wealth of valuable information upfront in a clear, focused, and easily accessible format. Alongside their advanced technology, the industry experience that James Bingham and Leanne Dawson bring is invaluable, giving them a true lender’s perspective.”
