Keeping on top of lodging and paying your BAS on time can be challenging for most companies. Even if your business has all of its finances in order, it is still often a mad rush to get your tax information in on time and your tax bills paid. Often, these tax bills can strike us when we’re not ready for them, putting stress on your business’ cash flow.
If you are struggling to meet your tax bills don’t despair BCashflow Positive can help. As a leading invoice finance company with 27 years experience, we can help you stay on top of your ATO obligations by unlocking immediate cash from your unpaid invoices.
How accounts receivable factoring can free up cash flow
Sometimes your clients can take up to 3 months to pay their invoices, and this can feel like forever if your business has bills to pay and salaries to meet. The financial strain can be more stressful particular around tax time. Accounts receivable factoring gives your business the option to get an advance based on what your customers owe you. In other words, your business can seek finance based on your accounts receivable. Accounts receivable factoring can release immediate cash flow from your unpaid invoices, allowing you to pay your tax bills on time, reinvest into the business, pay for goods or services or pay wages on time.
How accounts receivable factoring works
You invoice your clients for goods or services and simply send BCashflow Positive a copy. We advance you with up to 80% of the invoice face value in as quick as 24 hours. Then we work with you to help follow up on payment and pass on the remaining 20% less any accrued fees when your client pays us. The beauty of accounts receivable factoring is that it can cover the gap of slow payments and provide you with immediate cash flow. This will stop you having to juggle bills and other business expenses with limited cash flow.
Accounts receivable factoring at tax time
As a business owner, you know that it isn’t always smooth sailing. You can have a lot of work on at one time, followed by a work drought with no money coming in, and these ups and downs can put a heavy strain on the running of your business. When your tax bill arrives, you want to ensure you have the money to pay it without the hassle. And by contacting us at BCashflow Positive ahead of tax time, and talking to us about our accounts receivable factoring service, you can put the wheels into motion for a stress-free tax period.