A Financial Solution To Get Cash Flowing

There are a number of working capital and cash flow finance tools now available to businesses.

These range from the traditional overdraft to merchant cash advances, P2P loans, marketplace lenders, SaaS cash flow management tools, unsecured lines of credit and online business loans.

One solution which is growing in popularity globally is receivables finance (also known as invoice finance), which essentially involves the selling of a business’ accounts receivable in exchange for a cash advance.

This means the cash from a credit sale can be accessed and put back to work quickly to pay down creditors or fund new sales. Invoice finance can be used on either a short or long-term basis, as with other solutions such as trade finance or asset finance.

A powerful standalone business finance facility, invoice finance grows with your business and can sit alongside other business borrowings (such as overdrafts, term loans, and asset finance).

There is generally no need for real estate security (e.g. your home), as invoice finance leverages your customers’ credit rating, not yours, unlocking your cash flow and helping to strengthen supplier relationships through prompt payment.

How invoice finance works

Once you have secured an invoice finance facility, drawing upon it is easy:

• Upload your invoice: You invoice your customers directly and upload the invoice to your financier at the same time
• 24-hour approval: The invoice financier will pay up to 90% of the value of approved invoices, less fees.
• Cash advancement: The remaining 10% becomes available to you when the invoice is paid in full.

Benefits of invoice finance

Invoice finance lets you access capital that is already owed to your business. Rather than adding debt, invoice finance provides a fast cash injection without any long-term loan commitments.

Invoice finance is repaid when your client settles your invoice, so there are no fixed-term interest charges. The increased liquidity enables you to cover operating costs and grow your business with predictable cash flow.

Invoice finance makes it much easier to implement growth strategies and lets you capitalise on lucrative big contracts without worrying how your cash flow will be impacted waiting for the client to pay.

Invoice finance can be tailored to the needs of your business. It is a fast way to raise capital as and when you need it to cover operational costs and unexpected bills.

With sufficient cash flow, you can focus on dollar productive tasks like acquiring new customers and growing your business. Some invoice finance solutions also enable you to outsource debtor collections entirely, reducing overheads and time spent chasing debtors.

Whether bringing a new product or service to market or creating more efficient business processes, innovation is vital for growth. Invoice finance helps you to access funding to capitalise on opportunities quickly. You can be approved for invoice finance and receive cash in your account within as little as 24 hours.

You can Download our Cashflow Guide here

We offer a range of flexible finance solutions to help businesses access the capital they need to grow. Speak to us today to explore your funding options

Feel free to contact us for anything that relates to your business finances so we can help with your success.

4 Pickett Drive , Altona North, VIC 3025