In this exclusive Q&A with Hannah Fitzsimons, CEO of Cashflows, Business Matters magazine delves into what SMEs need to know about cash flow
Tell us about cash flows
Cashflows was created in 2010 with the aim of making receiving and accepting payments as easy as possible through its end-to-end in-house offering. Payments are critical to small and medium-sized 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 since been offering merchant account services to customers in the European Economic Area (EEA).
Following FCA authorization as an EMI, Cashflows was one of the first independent payment institutions in the UK to be accepted as a principal member of both Visa and Mastercard.
Financing is an essential cornerstone of any SME and Cash Flows delivered over £2 million in cash advance to the trader over a nine month period. Payments are what makes the global economy work, and that’s exactly what Cashflows is designed to handle. With a reach across the UK and Europe, this translates into billions of transactions across many thousands of businesses, helping them to accept payments easily and securely, both in person and online.
What was the inspiration behind Cashflows Advance?
Cashflows Advance was inspired by the serious cash flow challenges faced by UK SMEs. It is a quick financing solution for existing Cashflows customers. It offers instant access to funds based on a business’s transaction history, with refunds tied to future sales. In essence, it is a simple alternative to traditional loans and helps SMEs overcome cash flow challenges and invest in growth.
Recognizing that traditional lending often fails to meet evolving business needs, we sought to create a more dynamic solution. By leveraging 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 financing solution tailored to their specific needs and challenges.
Who do you admire?
I’m a classically trained pianist and have a very eclectic musical taste, so a lot of my heroes are musical. Hania Rani, a brilliant Polish pianist and composer, amazes me with the blurred lines she creates between jazz, classical and house. Aretha Franklin will always be a hero too. Not just for her voice and her talent, but for her activism and support for social change and my teenage daughter now shares with me her adoration of Taylor Swift: an incredibly 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 talented speaker in the fintech space. She is also a member of the board of directors of Cashflow and recently gave a speech 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 our personal artwork. It was an inspiring way to look at our travels.
Looking back, is there anything you would have done differently?
As far as I know now, I probably would have invested heavily in Apple in the early 2000s. But seriously, I’m not sure I would have done much differently. My philosophy has always been to work hard, do what’s asked of you, and seize opportunities when they arise. When things didn’t always go perfectly, I always learned from these experiences and even an ill-advised move to Belgium taught me some life lessons in my twenties.
So for those starting an SME, the point is to believe in yourself, listen to the people around you, commit wholeheartedly to your goals and learn from them when the ideal outcome is not what you see at first. Then, years later, when 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 SMB, cash flow is the lifeblood of your business. Be prepared to adjust your plans as needed to maintain ongoing monitoring and make adjustments to ensure the financial health of your company.
Above all, don’t be afraid to ask for advice on anything. While on the topic of cash flow, remember that accountants are there for a reason and it’s never a bad idea to ask for their input in optimizing 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 perspectives as possible from all stakeholders is the best approach and is certainly how I approach business at Cashflows. Every voice, from your employees to your customers, contains valuable information. By fostering an open and inclusive environment, you can tap into the collective wisdom of your community, which is the best problem-solving machine you have access to.
This collaborative approach is essential in any dynamic environment such as payments. By understanding the diverse needs of our customers, 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 every successful business relationship and keeping our promises is paramount. This reliability extends to our customers, partners and employees.
Ultimately, our business philosophy is based on human connection. By listening carefully and honoring our commitments, we aim to create lasting partnerships and have a positive impact on our customers’ financial lives.