Fixed-fee retainers - how to reduce cash flow strain

• Cash flow challenge: My income fluctuates each month depending on projects, which makes it hard to cover fixed costs like rent, salaries, and bills.

• Perfect for: Service based businesses such as agencies, consultants, and freelancers who want consistent income and better financial control.

Novuna helps businesses reduce cash flow strain by providing flexible funding solutions that complement fixed-fee agreements. We compare providers, guide you through the application, and ensure you get the best fit for your business.

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Why fixed-fee retainers matter

Many service businesses rely on one-off projects or variable billing, which can cause income peaks and troughs. A fixed monthly retainer provides predictable revenue, helping to cover salaries, rent, and other running costs without cash flow surprises.

Benefits of fixed-fee retainers

• Consistent cash flow: Regular income helps balance out quieter months and gives financial stability.
  

• Stronger client relationships: Retainers encourage long-term commitments, improving client loyalty and reducing the need to constantly find new work.

• Easier forecasting: Predictable income makes it simpler to budget, invest in growth, and plan for the future.
  

• Less admin: Fewer invoices and simpler billing cycles reduce the time spent chasing payments.
  

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Practical tips for setting up retainers

• Match scope to client needs: Define clear deliverables that suit both sides.

• Offer tiered options: Create different packages so clients can choose a level that suits their budget.

• Include flexibility: Allow some variation in hours or tasks to keep agreements practical.

• Review regularly: Check every few months that the retainer still works for both you and the client.

Funding support alongside retainers

Even with retainers, businesses can still face cash flow gaps if clients delay payments or unexpected costs arise. Options include:

• Invoice finance: Release cash from unpaid invoices quickly.

• Short-term loans: Bridge gaps between income and costs.

• Overdraft alternatives: Flexible facilities that cover shortfalls when needed.

How Novuna Business Cash Flow can help

We work with service based businesses to smooth cash flow and make retainers more effective. Whether through invoice finance, short-term loans, or other solutions, we’ll help you keep income steady and your business on track.