In this exclusive Q&A with Hannah Fitzsimons, the CEO of Cashflows, Business Matters magazine delves into what SMEs need to know about cashflow
Tell us about Cashflows
Cashflows was created in 2010 with the goal to make taking and accepting payments as simple as possible through its end-to-end in-house offering. Payments are critical to small to medium businesses, but it’s a complex area and businesses can get lost as payments become a more vital part of their operations. The payments experts have been offering merchant account services to customers across the European Economic Area (EEA) ever since.
Following FCA authorisation as an EMI, Cashflows was one of the first independent UK payments institutions to be accepted as a principal member of both Visa and Mastercard.
Funding is an essential cornerstone of any SME and Cashflows delivered over £2m in merchant cash advance in one nine-month period. Payments are what makes the global economy tick, and this is exactly what Cashflows is designed to handle. With a reach across the UK and Europe, that translates to billions of transactions across many thousands of businesses – helping them accept payments simply and securely, both in person and online.
What was the inspiration behind Cashflows Advance?
Cashflows Advance was inspired by the acute cash flow challenges faced by UK SMEs. It’s a rapid funding solution for existing Cashflows customers. It offers immediate access to funds based on a business’s transaction history, with repayments tied to future sales. In essence, it’s a hassle-free alternative to traditional loans and helps SMEs overcome cash flow challenges and invest in growth.
Recognising that traditional loans often fail to address evolving business needs, we sought to create a more dynamic solution. By leveraging our existing customer data and risk assessment capabilities, Cashflows Advance offers SMEs instant access to funds based on their sales performance. This innovative approach eliminates lengthy application processes and provides businesses with the financial flexibility to seize growth opportunities without the burden of inflexible repayment terms. Essentially, Cashflows Advance was born out of a desire to empower SMEs by offering a funding solution tailored to their specific needs and challenges.
Who do you admire?
I’m a classically trained pianist and have a very eclectic music taste, so many of my heroes are musical. Hania Rani who is a brilliant Polish pianist and composer amazes me with the blurred lines she creates between jazz, classical and house music. Aretha Franklin will always be a hero too. Not only for her voice and talent, but for her activism and support for social change and my teenage daughter is now sharing her adoration of Taylor Swift with me – an unbelievably talented and commercially savvy phenomenon.
But coming back to the world of payments and SMEs I’m a big fan of Marion King who is a gifted orator within the fintech realm. She’s also a member of Cashflow’s board and recently gave a talk at a Women in Payments event where she used the analogy of looking at our overall lives as canvases that we need to curate and be intentional about how we build out our own personal work of art. That was an inspiring way of looking at our own journeys.
Looking back, is there anything you would have done differently?
Knowing what I know now, I would probably have invested heavily in Apple in the early ‘00s. But seriously, I’m not sure there’s much I would have done differently. My philosophy has always been to work hard, deliver on what is asked of you and take the opportunities when they come along. When things haven’t always gone perfectly I have always taken learnings from these experiences and even an ill-thought-through move to Belgium delivered some life lessons in my 20s.
So, for those starting up an SME, the takeaway here is to believe in yourself, listen to the people around you, commit to your goals wholeheartedly and learn from it when the ideal outcome isn’t what you see at first. Then years down the line when you’re asked what you would have done differently you can say “nothing” with confidence and sincerity.
What advice would you give to someone starting out?
Take it as gospel that, for an SME, cash flow is the lifeblood of your business. Be prepared to adjust your plans as needed to maintain continuous monitoring and alter to ensure your business’s financial health.
Above all, don’t be afraid to ask for advice on anything. Staying on the topic of cash flow, remember that accountants are there for a reason and it’s never a bad idea to seek their input to optimise your business. They’ll probably tell you that you should aim to have enough cash on hand to cover operating expenses for at least three months – and they’re not wrong.
What defines your way of doing business?
Understanding as many viewpoints as possible across all stakeholders is the best approach and it’s certainly how I approach business at Cashflows. Every voice, from your employees to your customers, holds valuable insights. By fostering an open and inclusive environment, you can harness the collective wisdom of your community, which is the best problem-solving machine you have access to.
This collaborative approach is essential in any environment as dynamic as payments. By understanding the diverse needs of our clients, we can develop solutions that truly meet their expectations. Equally important is our unwavering dedication to our commitments. We believe that trust is the cornerstone of any successful business relationship, and keeping our promises is paramount. This reliability extends to our customers, partners, and employees alike.
Ultimately, our business philosophy is built on the foundation of human connection. By listening attentively and delivering on our commitments, we aim to create long-lasting partnerships and make a positive impact on the financial lives of our customers.