Manchester is a growing and vibrant city, and is becoming one of the United Kingdom’s economic powerhouses outside of London itself. A successful city should never rest on its laurels, just as a successful business never should. That’s why the local authorities in Manchester have announced ambitious plans to grow the local economy. A recent article on Thisismoney.co.uk looks at these plans in depth. Here, Glowing Global reviews the article, and considers what it could mean for businesses in the region.
“Starting a business can be the gateway to a better and more fulfilling future, but it takes time and energy”, said Ricco Katona, director of Glowing Global. “It can also take investment, and this can be hard to find for first time entrepreneurs. They may also be worried about cash flow in the early months of their business operations. That’s why the scheme announced in Manchester is so interesting. It will encourage would-be entrepreneurs to take that all important first step, and this will be great news for the local economy.”
The Greater Manchester Combined Authority is made up of ten councils in and around Manchester itself. They realised that one of the major obstacles facing businesses within the region was cashflow centred around invoicing. It’s common practice for work to be done in advance, and then invoices sent off for payment. This is where the problem arises, because many businesses are having to wait up to 120 days for the invoice to be paid. For new businesses, without cash flow reserves, this can be a significant problem. To tackle this, the combined authority has teamed up with the financing website Market Invoice.
Market Invoice is an innovative website that brings peer to peer lending to the world of business. It means that lenders can buy invoices, and provide instant funds to companies who are awaiting payment. In this way, the lenders can enjoy better rates of interest than they would from traditional saving options. The GMCA have announced a partnership with Market Invoice, where they will buy up invoices owed to businesses in their region. This will involve them investing around £2 million over two years.
“Invoice delays can have a major impact on young businesses, so it’s good to see local authorities taking proactive steps to combat this”, said Ricco Katona. “This should spread to other local authorities as well, and will help entrepreneurs feel much more confident about starting their own business.”
Entrepreneurs new and experienced can also benefit from the marketing expertise of Glowing Global. They can help with customer acquisition and enhance brand awareness.