In this exclusive Q&A with Hannah Fitzsimmons, CEO of Cashflows, Business Matters explores what SMEs need to know about cash flow.
Tell us about cash flows.
Cashflows was founded in 2010 with the goal of making receiving and accepting payments as simple as possible through its comprehensive in-house services. Payments are crucial for SMEs, but it is a complex area and businesses can get lost as payments become a more important part of their operations. The payments experts have been providing merchant account services to clients across the European Economic Area (EEA) ever since.
After being licensed by the UK Financial Services Authority (FCA) as an EMI institution, Cashflows became one of the first independent payments institutions in the UK to be accepted as a Principal Member of both Visa and Mastercard.
Financing is the cornerstone of any small and medium-sized business. Cash flows We’ve delivered over £2 million in cash to merchants in a nine-month period. Payments are what drives the global economy, and that’s exactly what Cashflows is designed to handle. With a presence across the UK and Europe, this translates into billions of transactions across thousands of businesses – helping them accept payments simply and securely, whether in person or online.
What is the inspiration behind Cashflows Advance?
Cashflows Advance was inspired by the acute cash flow challenges faced by UK SMEs. It is a fast-track financing solution for existing Cashflows customers. It provides immediate access to funds based on a company’s transaction history, with repayments tied to future sales. Essentially, it is a hassle-free alternative to traditional loans, helping SMEs overcome cash flow challenges and invest in growth.
Recognizing that traditional loans often fail to meet evolving business needs, we sought to innovate a more dynamic solution. By leveraging existing customer data and risk assessment capabilities, Cashflows Advance provides SMEs with 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. At its core, Cashflows Advance was born from a desire to empower SMEs by offering a financing solution tailored to their specific needs and challenges.
Who do you admire?
I am a classically trained pianist with a very eclectic musical taste, so many of my heroes are musicians. Hania Rani, the brilliant Polish pianist and composer, amazes me with the blurring of lines she creates between jazz, classical and house music. Aretha Franklin will always be a hero too. Not just for her voice and talent, but also for her activism and advocacy for social change, and now my teenage daughter shares her admiration for Taylor Swift – an incredibly talented and commercially savvy phenomenon.
But back to the world of payments and SMEs, I’m a huge fan of Marion King, a gifted fintech speaker. She’s also on the Cashflow board and recently gave a talk at the Women in Payments event where she used the metaphor of looking at our lives as a canvas that we need to organize and figure out how to build our own personal artwork. It was an inspiring way to look at our own journeys.
Looking back, is there anything you would have done differently?
Knowing what I know now, I probably would have invested heavily in Apple in the early 2000s. But seriously, I’m not sure what I would have done differently. My philosophy has always been to work hard, deliver, and seize opportunities when they arise. When things didn’t always go my way, I always learned from those experiences, and even a poorly planned move to Belgium taught me some life lessons in my 20s.
So, for those starting out as an SME, the lesson here is to believe in yourself, listen to the people around you, stick to your goals wholeheartedly and learn from them when the ideal outcome isn’t what you initially envisioned. Then, years later, when asked what you would have done differently, you can confidently and sincerely say “nothing.”
What advice would you give to someone who is just starting out?
Consider cash flow as the lifeblood of small and medium-sized businesses. Be prepared to adjust your plans as needed to maintain ongoing monitoring and adjustment to ensure the financial health of your business.
Above all, don’t be afraid to ask for advice on anything. When it comes to cash flow, remember that accountants are there for a reason, and it’s never a bad idea to ask for their opinion on how to improve your business. They’ll probably tell you that you should aim to have enough cash on hand to cover at least three months of operating expenses – and they’re right.
What defines your approach to business?
Understanding as many perspectives as possible across all stakeholders is the best approach, and that’s certainly the approach I take in doing business at Cashflows. Every voice, from your employees to your customers, carries valuable insights. By fostering an open and inclusive environment, you tap into the collective wisdom of your community, the best problem-solving machine you have access to.
This collaborative approach is essential in any dynamic environment such as the payments environment. By understanding the diverse needs of our customers, we can develop solutions that truly meet their expectations. Also crucial is our unwavering commitment to our commitments. We believe that trust is the cornerstone of any successful business relationship, and delivering on our promises is of paramount importance. This reliability extends to our customers, partners and employees alike.
Ultimately, our business philosophy is based on human connection. By listening carefully and delivering on our commitments, we aim to create long-term partnerships and make a positive impact on our clients’ financial lives.