Cash flow is one of the most important financial considerations for any business. The current economic climate is forcing many companies to better manage liquidity and strengthen their balance sheet. Invoice financing can help with cash flow because it pulls forward income from tax invoices issued to customers on standard credit terms and frees up working capital.
In Business Cash is King.
No matter how great your business model is, how profitable you are or how many customers are interested in supporting your business, you can’t survive if you can’t manage your cash flow.
At Cashflow Recovery we help by implementing solutions to help business’ resolve Cashflow issues, especially with Factoring & Invoice Finance and Working Capital finance.
Invoice Finance, also known as Factoring, Cashflow Finance or Debtor Finance is a type of Finance that is used to help business improve Cashflow immediately. It is the ultimate Working Capital solution for all business.
It is a process where a business uses the invoices that it sends to other business to pay for services or good you supply (accounts receivable ledger) as collateral.
Generally, companies that have low working capital reserves can get into cash flow problems because invoices are paid on net 30, 45, 60 or 90 day terms. According to Dun & Bradstreet the average time invoices are paid in Australia is 45 days.
Factoring and Invoice Finance solutions fund slow-paying invoices, which improves the cash flow of the company and puts it in a better position to pay operating expenses, wages and suppliers.
An Factoring or Invoice Finance facility will help you turn your outstanding invoices into cash within 24 hours. You will be able to draw up to 80% of the value of your invoices with the balance (less our fees) becoming available when the invoices have been paid
Download the Flyer to find out more.
No Property Security Required
Factoring or Invoice Finance does not require property security. Some business’s embrace Invoice Finance to help them grow strongly as the only security is the Issued Invoices. Further they are not constrained by the limits imposed by an overdraft. As no property security is required it frees up the family home from being used to secure the business.
How we work?
After reviewing your business, we match you with an appropriate Invoice Finance Lender from our panel of Factoring Lenders. We then work with the business owner or your accountant or book keeper to ensure the correct documentation is provided to enable for a quick approval. Where required we may arrange other working capital solutions to help your business grow.
What Industries use Invoice Finance
Invoice finance facilities are designed to help businesses that supply their products or services to other businesses on standard trade credit terms. The industries most typically suited to Invoice Finance are:
- Temporary staff hire
- Mining services
- Business services such as
- Tiles – Wholesaler/Distributor
- Coconut Water – Wholesaler/Distributor
- Fruit and Vegetables – Wholesaler/Distributor
- Pork – Wholesaler/Distributor
- Confectionary – Wholesaler/Distributor
- Beers – Importer/distributor
- Wines – Importer/distributor
- Furniture – manufacturer
- Security companies – Labour Hire
- Property maintenance
- Flowers – Wholesaler/Distributor
- Printing services
- Commercial cleaning services
- Commercial catering company
- Engineering – defence force
- Mining – machinery/equipment
- Traffic services – labour hire
- And many others
Is it suitable for all business structures?
Yes its suitable for business that have an ABN such as,
- Pty Ltd companies
- Family Trusts
- Sole Traders
If you want to an assessment on whether you qualify contact us today on 1300 885 244.
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