Written by Darin Hindmarsh
If you are losing $1,000s in business because of a lack of business cash flow, then invoice finance is the solution for you
Australian small and medium sized businesses often find thems
elves faced withwonderful market place opportunities, but may have difficulty growing or expanding their business due to the strict lending criteria of the banks or when cash flow is tied up in unpaid invoices. An excellent alternative solution is invoice finance, also known as debtor finance.
Contrary to popular belief that debtor finance or invoice financing is used by companies in financial trouble, it can help businesses use its sales as leverage to generate the capital demanded by rapid growth and provides a steady and flexible source of funds. It is a process to grow your business. Invoice financing is a highly effective way of increasing your working capital significantly by converting your trade debtors (sales invoices) into cash.
Benefits of using invoice financing include the following:
• Improve on cash flow and help your business run smoothly using invoice finance
• Fund business growth or new acquisitions with invoice financing or debtor finance
• Invoice finance lets you access funds quickly to capitalise on business opportunities as they arise
• No real estate security required with invoice finance, so it will reduce your personal exposure to the business and the risk of losing the family home
• Satisfy subcontractor and job-related expenses with invoice finance
• Improve your buying power using debtor finance
• Invoice finance gives you up to 90% of the value of your invoices available for use in the business within 24 hrs
• Avoid long-term commitments with this business cash flow finance solution
• Debtor finance lets you accelerates business growth by enabling you to purchase materials or pay for the next order ahead of receiving cash from customers
• Flexible facilities that grow with your business
• Simple setup process without the red tape
• You still maintain full control with invoice financing or debtor finance
Invoice financing is ideal for your business if you:
• Want to break free from the usual securities sought by the mortgage lenders
• Want to leave the business' fixed assets unencumbered for sale or refinance without hindrance
• Want peace of mind that your funding line is secured by the business itself and not your personal assets
• Want to seek a working capital facility to assist with business growth or to take advantage of an opportunity
Invoice finance is preferable to a bank overdraft as it has the flexibility to expand with your sales without the need for time-consuming renegotiations with your bank. An invoice finance facility cannot be called in, unlike a bank overdraft.
We have access to over 20 mortgage lenders in Australia and will research and compare the various invoice finance products and find the right business financeproduct that suits your needs.
So if you are having difficulty getting a traditional business loan through your lender, or want to expand your business without having to wait 30 days for your customers to pay outstanding invoices, speak to the mortgage brokers at Intellichoice on 1300 55 10 45 to find out how we can help with your business cash flow. Our experienced mortgage brokers also have access to other business cash flow finance solutions, including trade, inventory finance and equipment rental.