Factoring Versus a Business OverdraftAug 11 2020 in Invoice Factoring
Cash flow is the lifeblood of a business. Whether you’re a start-up or an enterprise, you cannot thrive without a positive cash flow. But the reality is every business faces cash flow challenges at a certain stage of their business. Whether it’s as a result of a downturn in the economy, seasonal issues beyond your control, unexpected expenses, slow-paying clients, or in the current climate, a pandemic.
In this article, we will examine 2 funding options businesses are using to improve their cash flow, and what to take into account for each.
1. Business overdraft
What is a business overdraft?
A business overdraft is a pre-approved line of credit that allows you to draw more than your available balance. The definition of an overdraft is taking out more than what is in your account. Similar to a credit card or a business loan, interest is charged based on the amount of credit you use.
What fees and charges apply for a business overdraft?
A business overdraft normally comes with an application fee or establishment fee, interest, account keeping fees, and an over-limit fee if you exceed your limit.
Security requirements for a business overdraft
A business bank overdraft can be secured or unsecured. Normally a business overdraft with a limit higher than $50,000 would require security by the banks.
Secured business overdrafts normally require a charge over residential properties, commercial properties, or blanket security over all the company’s assets. The issue here is that when said security is in place, you are fully locked into dealing with that one lender outside of the purchase of further fixed assets. Noting that although potentially being able to purchase fixed assets under a lease, the bank still requires their input as far as annual reviews, etc. to determine ongoing serviceability requirements. Once those fixed assets under finance have been repaid, they fall under the blanket security charge the bank[s] have in place.
What is factoring and how does it work?
Factoring allows you to unlock cash from your accounts receivable and improve your business cash flow. It helps businesses to cover the gap of late payments and provides instant access to funds instead of waiting up to 90 days for their clients to pay. BCashflow Positive factoring can convert your unpaid invoices into cash, in 3 simple steps:
1. Invoice your clients and send BCashflow Positive a copy.
2. BCashflow Positive will advance up to 90% of the invoice value in as quick as 4 hours.
3. We will credit you the remainder less any accrued fees when your client pays us.
How much does BCashflow Positive factoring cost?
BCashflow Positive is transparent about fees, so there are no surprises. We charge 1.8% for the first 30 days, and 0.06% thereafter for up to 90 days. There are no other hidden fees. Give our fee and funding calculator a go to see how much funding you can get, and how much it is going to cost.
Approval and security requirements for BCashflow Positive factoring
Unlike a secured overdraft, where a charge is over residential properties, commercial properties, or blanket security over all the company’s assets, BCashflow Positive factoring only places a charge over the accounts receivable. Factoring gives businesses the freedom to seek other sources of finance, if required, to support their growing business.
BCashflow Positive does not charge an application fee and approval can be in as quick as 24 hours.
What businesses or industries is factoring suitable for?
Since factoring primarily focuses on the quality of your accounts receivable and the paying capacity of your clients, it is very appealing to start-ups or growing companies with a large number of customers on accounts. Factoring is also suitable for industries with long sales cycles such as manufacturing, labour-hire for the health sector, commercial cleaning, business services, and wholesale, to cover the gap of slow payments.
Factoring compared to a business overdraft
A business overdraft is a straight forward loan that has interest and activity fees, its value is that it does not have an end date or repayment schedule. But once the limit has been reached it does not have any flexibilities post that and we have seen many businesses over the years cap out on overdrafts and then nowhere to go. That is when they look for options such as factoring to align the demands of cash flow to the actual liquidity of the business.
Factoring works and does so as it matches like for like. As the business grows so do the sales and the exposure to the factoring company is only ever a percentage of your factored sales at a point in time.
BCashflow Positive factoring allows you to leverage off an untapped asset within the business, the receivables ledger. A funding solution that allows you to release the cash flow that would otherwise be locked up in your unpaid invoices to cover the costs of your next round of new orders waiting to be fulfilled.
When operating successfully within the gross margins set, often a business will offer discounts to customers allowing them to speed up the cash flow cycle enabling them to purchase the stock or employ the staff to cover the next order or generically growing business. The cost is a manageable loss of gross margin to get the cash in. Factoring mimics that process by using a third party like BCashflow Positive to bring forward the sales timeline at a discount. It allows you to leverage off those future invoice payments, so that you can use the released funds to pay suppliers, cover the costs of production to deliver on new orders, and pay wages on time.
Why Factoring with BCashflow Positive?
With three decades of experience, BCashflow Positive has become a leading factoring company in Australia. We want to help small and medium businesses, even start-ups, to thrive and manage their cash flow needs. There are no quarterly audits or intrusive shadow software. We give you the freedom to run your business.
Since factoring is not a loan, industries that are new, growing, or facing cash flow gaps will find factoring to be an attractive option. If you’re an SME looking for a flexible cash flow solution, call 1300 937 292 and speak to one of our factoring experts to fast-track your application.
Changes To JobKeeper: How To Mitigate The Impacts Using Factoring FinanceJul 22 2020 in Invoice Factoring
The JobKeeper wage subsidy will continue until March 2021 but will reduce from $1,500 to $1,200 a fortnight after September, and then reduce again to $1,000 a fortnight for the first three months of 2021. For people working fewer than 20 hours a week, they will receive $750 a fortnight, then reducing to $650 a fortnight along the same time line.
Approximately one million Australians have lost their jobs as a result of the pandemic, while small and medium businesses with their low cash reserves, higher fixed costs and restricted access to lending, are struggling to stay afloat.
The latest ABS Business Indicators survey observes that three in ten (30%) small businesses (i.e. those with 0-19 persons employed) reported that currently available cash on hand would support business operations for less than 3 months.
Business sentiments on length of time operations could be supported by currently available cash on hand (a)
a) Proportions are of all businesses. Source https://www.abs.gov.au/ausstats
Businesses should look into alternative sources of finance such as factoring finance to prepare for the reduction in JobKeeper, and eventually when the tap is turned off.
Prepare a cash flow forecast
Cash flow is the movement of money in and out of your business. A positive cash flow means that there is more money coming in than what your business is spending. While a negative cash flow means there is more cash going out of your business, than coming in.
Negative cash flow is a major warning sign, especially during these uncertain times. A reliable and consistent cash flow forecast is critical to ensure your business can plan for any shortfall.
A cash flow forecast can also help your business to understand the source and certainty of your income and expenses, and what actions to take.
Taking advantage of unpaid invoices
With the economic instability, businesses are now experiencing slow payments from clients, in turn, creating a cash flow gap. Instead of waiting for clients to pay, businesses can cover this gap through factoring finance, and get paid in as quick as 4 hours.
Especially with the economic turmoil brought about by the pandemic, we at BCashflow Positive understand the need for SMEs to manage the pressures related to cash flow during the crisis. BCashflow Positive offer a consistent funding solution, as an alternative to traditional loans and banks, and a flexible funding solution via Key Factors with no lock-in contract. This flexibility allows businesses of varying sizes the ability to withstand the current landscape, for as long as possible.
Using factoring finance can allow business owners to concentrate more on pivoting their business to adapt to the new economic climate, rather than getting stuck on perplexing cash flow concerns.
BCashflow Positive factoring finance: Where to start?
BCashflow Positive offers a straightforward and efficient way for you to access your cash flow in 3 simple steps.
1. Send us your invoices: Send BCashflow Positive copies of invoices you would like funded.
2. Funds in as quick as 4 hours: BCashflow Positive will process your invoices and advance you with up to 90% of the invoice value immediately.
3. When paid you get the rest: Once your client pays us, we will credit you the remainder less any accrued fees.
Who can BCashflow Positive assist?
Whether you are a company suffering from slow payments or poor cash flow, BCashflow Positive can help to unlock the hidden assets in your invoices and give you instant access to cash.
Don’t let slow payments hold your business back and start looking into how factoring finance can provide your business with a more predictable cash flow today.
The BCashflow Positive’s difference
We value transparency at BCashflow Positive. When using our online funding calculator, you can work out how much funding you can get and the exact fees that you’ll incur. We charge 1.8% for the first 30 days and 0.06% thereafter for up to 90 days.
As the uncertainty continues, it will be worthwhile to consider the benefits of factoring finance below:
Instant cash flow within hours.
Increase cash flow by drawing on your unpaid invoices.
No property or security required.
No restrictions and conditions like how banks work. No quarterly audits as well.
You can get on top of your tax obligations.
Above all, you’ll experience the flexibility in financing and improve cash flow.
It’s in our interest to help you carry on during these trying times, reach out and speak to a friendly cash flow expert today by filling out our contact form or call 1300 937 292.
Improving Your Cash Flow Amidst COVID19-Compelling Reasons to Finance Your Invoices NowMay 19 2020 in Invoice Finance
You have checked your cash flow data, monitoring every accounts receivable from your clients, who have not been able to keep up.
The wait goes on…
We know that having a positive mindset in this pandemic can be an ‘easier said than done’ scenario. But whilst the pandemic has had multiple industries grappling for some financial security, you can still be optimistic about keeping your business afloat – and more.
If you’ve found your cash flow to be slipping away from you more than ever, you need a flexible funding solution like BCashflow Positive invoice finance to stabilise your cash flow during this crisis. Your goal now is to manage overall business risks and keep financial continuity plans in place. You need all the support you can get in managing cash-related pressures during these times.
What short and long term cash flow management methods have you applied so far? What forms of alternative financing have you fuelled your business with to keep a healthy level of cash flow? What are your challenges with customer-client relationships?
Take a look at your invoices, waiting to be processed. Have you received what’s due to you from your clients?
Instead of grappling through your cash flow system, here are some reasons why financing your invoices now should be your next move. We’ve made each process as straightforward as possible so you can get back to being cash flow positive straight away.
Simple application process
In this time of crisis, the last thing you want is to be inundated with complicated paperwork and terms. Simply fill out our contact form and an invoice finance expert will be in touch to guide you through the invoice finance application process, and have a response for your application within 24-48 hours.
Our invoice finance experts will be there every step of the way to ensure that the application process is a simple and a stress-free experience.
Like you, we don’t like complicated jargon. We believe in transparency from the start so there are no surprises. You will know exactly what funding you can get and how much it is going to cost upfront by simply using our fee and funding calculator.
If you need more clarifications around our fee structure simply call 1300 937 292 and speak to one of our invoice finance experts, who will be more than happy to help.
Flexible alternative support
Instead of resorting to traditional loans, you will find invoice finance to be a more flexible alternative to support your business. Invoice finance is not a loan and the funding you receive is proportionate to your invoices. BCashflow Positive invoice finance lets you stay in control by allowing you to choose which invoices you would like to factor.
You can choose between our come and go arrangement with no lock-in or long-term contracts option via Key Factors. Or for more consistent access to funding BCashflow Positive invoice finance is a great long-term cash flow solution.
Manage business growth
BCashflow Positive invoice finance is suited to a variety of SMEs and growing businesses requiring additional working capital, even start-ups, or companies looking to get on top of their ATO debts, can benefit from invoice financing.
If you are in the wholesale industry, manufacturing, commercial cleaning, labour-hire, transport and logistics, manufacturing and wholesale, or earthmoving that is experiencing cash flow constraints due to slow payments, it might be a good time to consider invoice finance to cover the gap.
Rather than chasing receivables, you can concentrate on paying employee wages and outstanding operating expenses, exploring new marketing strategies and ways to pivot your business during COVID-19.
Our team can not only help to fund your invoices, but they will also help you collect them.
Instant cash—in hours
If your business is in need of instant cash, we can fund invoices in as quick as 4 hours. Rather than waiting for up to 90 days to get paid by your clients, you can convert your invoices into cash immediately with BCashflow Positive invoice finance.
Convert your invoices into cash in three simple steps:
- Invoice your customers and send us a copy.
- BCashflow Positive will advance you with up to 90% of the invoice value.
- BCashflow Positive will transfer you the remainder 10% when your client pays us, less any accrued fees.
With the instant cash flow support, you can return to normal operations, even speed up ongoing business transactions, and improve your cash management system.
With COVID-19 uncertainty still looming, it will be worthwhile to look into financing solutions to be able to move into the recovery phase of your business. Acting now and acting fast could be the difference between whether your business will survive.
If you’re unsure whether finance invoicing is right for you, speak to an invoice finance expert at BCashflow Positive today by calling 1300 937 292. With three decades of experience, BCashflow Positive has become the leading factoring company in Australia to help businesses see through cash flow challenges. Whatever your needs, we’re here to help.
Top New Year’s Resolutions For Business SuccessJan 15 2020 in Cash Flow Finance
It’s the start of a new year and the beginning of a new decade. This is also the perfect time to reflect on what your business has achieved in the last year, and what’s needed to achieve future goals.
Here are some top New Year Resolutions to consider for fuelling business growth:
Set SMART Goals with KPIs and Benchmarks
Every journey begins with a destination in mind, and for businesses setting SMART (Specific Measurable Attainable Realistic and Time-bound) goals is an important first step when planning for growth.
When setting your goals, make sure you have Key Performance Indicators (KPIs) and benchmarks set for every goal. This will enable you to measure the milestones that are key indicators for your success.
Plan your Success
The key to many successful businesses is planning everything down to the smallest detail. Make sure that planning is one of your resolutions this year and don’t leave your success to chance.
Planning every step of your business journey will help you decide what you’re going to do, when you will need to do it, and what you should avoid doing to grow your business.
The best way to put your plans into action is to review your most recent success stories to determine what you did right and can duplicate, instead of reinventing the wheel.
Track Your Cash Flow
It is important to track your cash flow, particularly the peaks and troughs periods. This will help you determine whether your business has sufficient working capital or should look into getting cash flow financing to improve cash flow.
Also, make it a resolution to periodically complete a cash flow analysis for your business, as this will give you a clear picture of what your cash flow requirements are.
Get Paid On Time
It’s not a surprise that a large number of businesses struggle to get paid on time. As a result, they find it difficult to manage their cash flow.
Make it part of your cash flow strategy to follow up persistently on late payments. If your payments aren’t being received by the due date, send customers a follow-up email or make a phone call. Include a late payment policy in all your contracts which clearly explains the penalties that will be enforced if there’s a delay in payment.
Look Into Cash Flow Financing To improve Cash Flow
For businesses that offer flexible payment terms to customers, cash flow problems can be substantially compounded. Waiting for 30, or even 90 days to get paid, forces many businesses to fund their operations using some form of finance.
A flexible form of business finance is cash flow financing.
Cash flow financing can help improve your business cash flow by reducing the time it takes for you to receive payments. At BCashflow Positive, we can fund your sales invoices in as quick as 4 hours, so you don’t have to wait 30, 60, or even 90 days to get paid.
BCashflow Positive’s cash flow financing can help inject immediate cash into your business by advancing up to 90% of the face value on your invoices upfront. The remaining 10% is credited to you when your customer pays us. This will make it easier for you to meet your ongoing expenses such as ATO obligations, staff wages, and supplier payments.
If you are looking for a faster way to access the cash tied up in your invoices and to give your New Year cash flow a boost, call BCashflow Positive on 1300 937 292 for more details or CLICK HERE to get a quote.
How to Boost Cash Flow this Holiday Season and Get Paid on TimeDec 02 2019 in Business Cash Flow
For the retail & hospitality industries, Christmas is a busy time, but for most other businesses sales begin to decline, cash flow slows down and customers take longer to pay.
The impact of the slowdown in cash flow during the holiday season often continues until the end of the first quarter as spending capabilities are limited due to maxed-out credit cards, back-to-school expenses, and other financial obligations.
Your business may find itself in financial difficulties if you fail to boost cash flow well in time for the holiday season. In this article, we will explain simple tactics to boost your business cash flow and how to get paid on time during the holiday season.
Cash Flow Boosting Tips
Here are some ideas you can make use of to boost sales during the holiday season.
Make Irresistible Offers: According to a study conducted by Roy Morgan, retail sales during the 2019 Christmas season is forecasted to be over $52.7 billion. The holiday season provides the perfect opportunity to boost your marketing campaigns for meeting the demand from customers hungry for a great deal.
If you are a service provider, improve the customer experience by building on the relationship. Offer after-hours service or a holiday-special “thank-you” offer.
For example, a cleaning business can offer to perform a complimentary cleaning if the customer prepays for two or more services in the New Year.
Introduce Loyalty Programs: This is the perfect time to introduce customer loyalty programs. Not only does it allow you to show loyal customers you care about them, but it also helps in boosting cash flow through recurring sales in your business.
Stock Up on Popular Items: Make sure you have sufficient stock of your most popular items, so you don’t run out of them when the demand peaks. Revisit the previous year’s holiday season sales to forecast how many units of popular products you will need.
Position popular products in a way that makes it easy to be found. If you have an online store, use banners and position them on your website so they immediately catch a website visitor’s attention.
On the other hand, if you have a physical store, place the items near the entrance or checkout counter. You can also put up some signs to draw a customer’s attention to the products.
Stand out with a professional website: Although your website may not require all the bells and whistles of household brands, a professional website is quite affordable and worth investing in. Trust is the new currency online, and if your website looks unprofessional and is hard to navigate, it’s not likely to give customers the confidence to buy. When designing your website, make sure it is mobile-friendly, as this will make it easier to keep up with traffic spikes and regularly promote special offers.
Managing Business Cash Flow
Whether you operate online or offline, managing cash flow during the holiday season is important to keep your business financially healthy.
Here are a few suggestions to help you keep cash flow under control this holiday season:
Get your Invoices Out on Time: Send out invoices to clients a little ahead of time, instead of waiting until month-end. Make it clear when you expect to get paid by ensuring payment terms are stated on invoices.When fulfilling orders, focus on the ones which can be completed the fastest, while scheduling others which take time to complete for early in the New Year.
Follow up On Payments: Set clear expectations with customers that they need to pay on time in accordance with pre-arranged credit terms.
Customers with a tendency for slow payment should be contacted a few days prior to the invoice due date to confirm they will be paying on time. Calling customers is a more effective option than emailing.
Cash Flow Forecast: Setting up a cash flow forecast is essential to weathering the ups and downs of your business and project future profitability.
Once you have a realistic budget set for the New Year, you can put your mind at ease knowing that your cash flow is under control.
Use a Debtor Financing Arrangement to Buffer Slow Payments
Despite your best efforts, you may face cash flow shortages during the holiday season. Debtor financing can help in accessing cash quickly and take away the pressure of chasing payments.
Debtor financing is designed to turn unpaid invoices into cash enabling you to pay suppliers and meet other operating expenses.
BCashflow Positive debtor financing can help your business avoid cash flow shortage by advancing up to 90% of the invoice value in as quick as 4 hours once a facility is in place, and the remaining 10% is credited to you when your customer pays us.
There is no fee to apply for debtor financing with BCashflow Positive and our charges are fully transparent, so you know exactly how much you will pay. If you’re looking to have fast access to cash locked up in your invoices this holiday season, don’t delay, call us on 1300 937 292 for more details or CLICK HERE to get a quote.
Top 3 Tips To Clear Your Tax ArrearsNov 01 2019 in Cash Flow Finance
Tax arrears are an increasing cause for concern among business owners as falling behind has serious repercussions on growth and profitability. According to the Australian Taxation Office (ATO), it is the primary cause of business liquidation.
Aside from the financial stress it can cause, battling tax arrears can divert your energy away from important activities such as growing your business.
Tax arrears can also put you at a disadvantage when seeking finance, as some lenders will consider tax liabilities as added risk and can increase their pricing accordingly.
Here are three ways to get rid of tax arrears and get back in control of business finances:
- Keep On Top Of Your Expenses And Cash Flow
Businesses in the start-up phase often run into financial difficulties during the second year when they receive their provisional tax invoice. Typically, a large amount of money is invested in costs such as equipment purchase, recruitment, rent, salaries, and marketing.
If your business does not have adequate cash reserves, you could struggle to meet your tax obligations. Cash flow is the heart of a healthy business, and one of the ways to ensure you have sufficient cash is to pay your taxes on time is through having the right finances in place.
Cash flow management is important at the operational as well as business level. Both are needed to help you plan your business’ financing needs.
With operational cash flow management, you are essentially mapping out cash coming in and going out of your business weekly for the next 8 to 12 weeks. It helps in identifying any blips in your cash flow from month-to-month.
Strategic cash flow management is about the bigger picture where you look at monthly cash flow for the coming 12 to 18 months. It’s about understanding the cash flow implications of your business strategies. It’s what you need to find out how much cash your new growth strategies will generate. You will also know how much money is required to fund growth objectives.
- Enter Into A Payment Arrangement
If you’ve fallen into tax arrears, it’s important to settle your dues as soon as possible.
One of the ways to reduce your tax outstandings is to enter into a payment arrangement with the ATO. This is essentially an arrangement where you agree to make deferred payments until your tax is paid off.
This will improve your cash flow position and take back control of your business.
- Use Cash Flow Financing To Clear Tax Arrears
An effective strategy to improve cash flow and clear tax arrears is through cash flow financing.
Through cash flow financing, you can receive an immediate inflow of cash from the cash flow finance company. The cash can be used to pay taxes as well as expansion opportunities.
Essentially, cash flow financing allows you to unlock funds owed to you before they are paid by your clients or customers. Cash flow financing can also relieve you of the burden of following up with clients or customers, as this can be taken care of by the cash flow finance company. This can free up your accounting staff’s time and reduce overhead costs.
At BCashflow Positive, we make the process of cash flow financing simple and fast. Up to 90% of your invoice value is made available to you in as quick as 4 hours. The remaining 10% is credited once your client pays us.
There are no hidden costs or quarterly audits required. You choose what invoices you would like funded and leave the rest to us. It is also free to apply and we will get back to you within 24 to 48 hours with a response.
If you’re looking to bring your tax arrears under control and would like to take advantage of supplier early payment discounts, finance business growth or boost cash reserves, then give us a call on 1300 937 292 or Click Here to get a quote.
How Invoice Financing is Saving Small Business From a Cashflow CrunchOct 07 2019 in Invoice Finance
The tightening of the lending criteria by banks is hurting small businesses looking to raise funds for meeting their cash flow needs.
A few years ago, profitable businesses operational for a period of time and with a good credit history found it quite easy to get approved by banks for a loan. This is no longer the case. Banks are making it harder, even for financially sound businesses to borrow money.
It’s not just hurting small businesses. According to the Australian Small Business and Family Enterprise Ombudsman Kate Carnell, the nation is in serious trouble if small businesses aren’t given help to grow in a flat economy.
Large businesses, on the other hand, continue to benefit. According to the RBA, lending to big business in the past five years has increased by a third, while bank lending to small business has been flat.
In 2017, the Reserve Bank had clearly said it wasn’t the lack of entrepreneurial spirit which was responsible for the economy slowing down, but the absence of entrepreneurial finance which was holding back the small-business part of Australia’s economy.
Late Payments Adding to the Cash-Flow Crunch
Compounding the difficulty to borrow funds when required, many small businesses are not getting paid on time. In turn, they aren’t able to pay their suppliers in a timely manner. This often results in supplies being cut off.
A research study carried out by Intuit across the globe found that 61% of small businesses are finding it difficult to manage their cash flow. The survey was carried out among 3,000 business owners from companies based in Australia, U.S., U.K., Canada, and India.
Despite their cash flow being choked, small businesses need to pay staff and their dues to the ATO. The Intuit study found that 32% of the businesses were unable to pay their vendors on time, while 43% had occasionally delayed payments to employees.
In comparison, large businesses have 60 and 90-day payment terms, as well as huge reserves of cash and, are easily able to tide over a short-term cash crunch.
Invoice Financing – Banks are Not the Answer
Small businesses who approach banks complain that banks will lend them money when it’s not needed and ask them to return it when cash reserves are depleted.
With problems such as cash flow and late payments, small businesses are looking for alternative financing solutions to fund their operations and growth.
Among these are invoice financing offered by companies such as BCashflow Positive. Essentially, invoice financing works by unlocking the cash tied up in invoices, thereby speeding up cash flow.
With the growing popularity of invoice financing, small businesses are able to take advantage of competitive rates compared to what’s offered by banks.
Working With BCashflow Positive – A Win-Win Solution
Partnering with a reputable and established invoice financier like BCashflow Positive is a positive step for SME’S. BCashflow Positive takes care to maintain a client/debtor relationship. We work closely with our clients to fully understand their business and customer needs before providing an invoice financing solution.
If you’re looking to have fast access to cash locked up in your invoices, we can get you up to 90% of your invoice value as quickly as 4 hours and the remaining 10% as soon as your customers make payment to us. Call us on 1300 937 292 for more details or CLICK HERE to get a quote.
EOFY 2019: BAS payments due, bills and more bills
As the end of this financial year is almost here, it shouldn’t be a surprise that your BAS statement is due again this 28 July. If you are a business registered for GST, you need to send your business activity statement (BAS) to the Australian Tax Office (ATO). You BAS helps you report GST, pay as you go (PAYG) instalments and other taxes.
ATO payments may become a stress point for your business, but there are simpler and better options other than the ‘Banks’ for helping you meet your ATO commitments. Traditionally, big banks won’t help or lend to small business especially if you have an ATO debt hanging over you.
At BCashflow Positive we specialise in assisting small businesses meet and manage cash flow needs like operating costs and ATO debt. Contacting us may make all the difference to your business cash flow by giving you access to your own funds currently locked up in your unpaid invoices/receivables.
Is Debtor Finance the same as a bank loan?
Debtor Finance is definitely a far cry for the traditional complex and over secured big bank business loan. The paperwork associated with Debtor Finance is simple and it won’t take weeks or months to get an answer.
The amount of cash you can access depends on your current receivables/unpaid invoice ledger, and not what a “back office” big bank credit manager may think they should give you.
Unlike the traditional big bank loans, BCashflow Positive does not take your personal assets and homes as security. You will be able to speak with the person that manages your account and is able to make decisions. The service level we provide will be a pleasant surprise.
Who benefits from Debtor Finance?
If you have outstanding invoices, Debtor Finance may be the answer you have been searching for.
At BCashflow Positive we are happy to look at all industry types so your business may be more than suitable. Some of the industries we have assisted include; Transport & Logistic, IT & Business Services, Earthmoving & Mining, Recruitment & Labour Hire, Manufacturing & Wholesale to name a few.
What are some of the many benefits of Debtor Finance?
The application and approval process is much faster than a bank loan. Instead of waiting weeks or possibly months for bank approval or your customer to pay, your business can access capital in as little as 4 hours once a facility is in place with BCashflow Positive.
Debtor Finance is a flexible alternative to finance business growth. It can cover the gap of slow payments and allows a business to get on top of ATO obligations. Businesses may also have the opportunity to take advantage of any supplier early payment discounts.
How does Debtor Finance work?
At BCashflow Positive you can turn your invoices into cash in three simple steps:
1.Invoice your clients for sales of goods or services.
2.Up to 90% of the invoice value is credited to you in as quick as 4 hours.
3.Receive the remainder less any accrued fees when your customer pays us.
Access funds from a leading Debtor Financing business
BCashflow Positive can work with small businesses experiencing tax difficulties. We can help your business access funding through your outstanding invoices. So take advantage of a debt factoring facility today by calling us on 1300 937 292 or complete our simple and quick contact form.
Are slow payments squeezing your cash flow?
Large powerful companies, corporations and contractors are actively adopting an approach to delay and defer their accounts payable from processing payments to their suppliers, often taking up to four months to pay their bills as a tactic to manage their own cash flow issues. However, although gaining popularity it is also done [often] at the expense of their suppliers, with a report from the small business ombudsman describing it as the “Silent Killer of Modern Business”.
In the past extended payment terms were often seen as a sign that a company was experiencing cash flow problems, but these days, big robust companies are imposing delayed payment strategies to accommodate their own cash flow restraints. These practices are turning suppliers into lenders, forcing the supplier to carry the cost as they wait for their own receivables to come in.
Who really pays the price?
Small businesses Australia wide pay the price. With banks tightening their lending policies and larger corporations exploiting their size and buying power it becomes even harder for the SMEs to navigate the flow on effects these practices are having. You still have a payroll to run, your own suppliers to pay, BAS and other taxes all of which can’t be put on hold whilst waiting months for payment.
An international study of 30,000 invoices from 80 countries found Australia is lagging the rest of the world in terms of late payments. Research by the UK-based Market Invoice found Australian businesses were being paid on average 26.4 days past the due date, far later than the next latest country, Mexico, with 18.6 days, or South Africa at 16.5 days late.
Are there ways to smooth cash flow?
Invoice factoring is an option that can level your cash flow as you move forward. At BCashflow Positive, our clients get up to 90% of the face value of the invoices in as quick as 4 hours instead of waiting for 60, 90 or even 120 days to be paid.
Instead of waiting weeks to receive payment on invoices, Invoice Factoring lets small and medium businesses access cash via their accounts receivables, allowing you to keep investing in your business, as you work out how to navigate the payment delay tactics your customers are undertaking.
Why BCashflow Positive?
BCashflow Positive is a leading provider of invoice factoring with 30 years’ experience in this field. We are a factoring company, that is what we do. Our fast turnaround can see you accessing funds caught up in outstanding invoices in just 4 hours. No hidden fees and the ability to choose what invoices you want funded allows you to control the cost of the facility.
How quickly can you get funds?
At BCashflow Positive, you can get funds in as quick as 4 hours once a facility is in place. For more information on invoice factoring with BCashflow Positive, call us on 1300 937 292, or fill out our quick contact form and we will be in touch.
Invoice financing alternatives in wake of credit squeezeMay 21 2019 in Invoice Factoring
Small businesses say they need loans. Banks say loan demand is slowing down and regulators are making lending standards tougher. What’s the fix?
For small business owners, raising capital has never been tougher than it is today. Banks have tightened credit to small businesses and in the wake of the Royal Commission’s investigations into misconduct in the banking and financial services industry, the banks are overly cautious about their lending practices, with the regulators saying that it is affecting their decisions in giving loans to small businesses.
The financial analysts warn, as banks tighten up lending standards, credit is harder to get. Which is worse for the economy and could lead to a credit crunch.
The important thing to keep in mind, as you prepare for what will be one of the biggest hurdles for small businesses in the event of another credit crunch, is that a painful and significant slowdown in small business financing would be the flow on effect.
How do small businesses obtain external financing?
As small businesses feel the credit crunch, they are opting for alternative ways to fund their growth. Most of the time, just simply to pay their bills.
A business that offers credit terms to their customers will complete jobs and then get paid at a point of time in the future. According to the case studies, it may take up to 90 days to see any money from work that has been completed. This means that these businesses have to come up with operating capital to pay wages and for materials that were necessary to do the work, out of their own resources. For a small business, this can be very draining.
This is why more and more firms are turning to invoice finance to help meet their cash flow, funding and growth challenges.
Could Invoice finance be your answer?
Invoice financing helps small businesses receive funds for work they had already completed ahead of time and not to rely on banks. Invoice financing is quickly becoming the go-to method in many industries – labour hire, transport warehousing, wholesale to name a few.
Basically, invoice finance is a way of accessing the funds tied up in your outstanding invoices as soon as they are raised, rather than waiting weeks or perhaps months for customers to pay.
Why BCashflow Positive is in the best position to help?
BCashflow Positive is a leading Australian invoice financing company with 30 years’ experience with the knowledge to help you make your financial decisions with confidence.
We will assign you with a specialist who can answer all of your questions and guide you through the process from set up to operational.
How to get started?
At BCashflow-Positive we make this incredibly easy for you. Our online application is simple, and it only takes 3 minutes to complete. We assess and provide an answer on all applications in as little as 48 hours from receipt of a completed application and supporting documents. Going forward, you provide us with copies of your invoices, and we will fund up to 90% – in as little as 4 hours, with the remaining balance released when your clients settle in full.
For more information on invoice financing with BCashflow-Positive, call us on 1300 937 292, or fill out our quick contact form and we will be in touch shortly.
How boutique financial services can provide better customer serviceApr 17 2019 in Invoice Finance
How are the Big 4 banks taking advantage of their customers?
The Australian Securities and Investments Commission (ASIC) and Australian Small Business and Family Enterprise Ombudsman (ASBFEO) say they’re concerned after the crackdown of the “fees for no service” scandal of Australia’s biggest financial institutions.
The Big 4 banks and their peers have been scrutinised over the past few months by ASIC and The Royal Commission for their greed and unethical standards. Even politicians have joined the chorus, and all seem to be singing from the same page, targeting deplorable customer service, bad financial advice, and for the practice of charging fees for advice that was never given, worst of all, reported cases of charging deceased clients for financial advice.
Wondering if there’s more? Look past the BIG FOUR
If you’re ready to take control of your financial future, you should first look at whom you’re choosing to get finance from. For excellent service, accountability, transparency and honesty, businesses need to look into the boutique financial services. The independent financial services market is packed with companies that have been operating for many years, and their customers are very well looked after. You have a choice, and there is no better time than now to break free and explore the alternatives.
Invoice finance is growing in popularity as a simple solution to a variety of financial needs, yet most business owners wonder if it is for them. The good news is Invoice Financing is for businesses of any size – including startups with a limited sales history and qualifying for financing is relatively quick and straightforward.
Why should you turn to us for invoice financing?
BCashflow Positive has been a market leader since 1989 and is totally independent. We are free from any influence or restrictions from the big banks or for that matter any other outside influences with its major competitor, a publicly listed company, undoubtedly controlled by its own financing facilities with the big four.
BCashflow Positive has a strong reputation and operates on core values – fairness, transparency and quality customer service levels that the others can only dream of.
BCashflow Positive pride themselves on offering simple, flexible and totally transparent Invoice Finance facilities, and to make it even easier for SME’s, BCashflow Positive does not ask for real estate security.
BCashflow Positive will take no more than 24 business hours to assess your application and come back to you with an answer and a formal offer. If you have dealt with the banks recently you would have experienced turnaround times that extend into weeks and even months.
Are you looking for financing?
If you need to raise funds from your debtors, Invoice Financing through BCashflow Positive would be an excellent alternative to what the majors can offer, with all their strings, controls and real estate security that go along with banks.
Don’t waste your time with the big banks, BCashflow Positive is the best alternative for your Invoice Financing requirements.
Find out more today by calling 1300 937 292 or fill out our quick contact form online.
Businesses should explore invoice financing as a credit crunch loomOct 26 2018 in Business Cash Flow, Invoice Factoring
Are you a small business owner? You’re probably facing a credit crunch as banking regulations have tightened due to the Royal Commission’s highly legalistic interpretation of responsible lending laws.
According to the Financial Review (Sep 2018), The Australian Prudential Regulation Authority is forcing banks to apply tougher tests on borrowers’ income and expenses, also delaying the time it takes for loans to be approved.
Mark McKenzie, chief executive of the Australian Convenience and Petroleum Marketers Association said to the Financial Review “Loan-to-valuation ratios (LVR) offered by banks to small firms in his sector has been slashed in half. About a year ago, small service station operators could attain an LVR of up to 75 percent. At the moment no one can get an LVR over 30 percent.”
That being said, small business owners need to look at alternative financing options to sustain their cash flow.
Why explore invoice financing?
Invoice financing, also known as invoice factoring, allows business owners to finance outstanding invoices. BCashflow Positive invoice financing advances you immediate cash collateralised by your unpaid invoices. It’s a great way to ensure you can still be on top of your operating expenses when your customers are slow in paying their invoices.
Invoice financing is also a great way to boost working capital when your company is experiencing rapid growth.
BCashflow Positive invoice financing
Applying for invoice financing with BCashflow Positive is simple and fast. Our online application takes 3 minutes to complete and an approval can be provided in as quick as 24 hours.
How invoice financing works?
Accessing funds from your unpaid invoices is as easy as 1 2 3:
1. Send us copies of invoices you wish to draw funds against.
2. Up to 90% of the invoice value is credited to your account in as quick as 4 hours.
3. The remaining 10%, less any accrued fees, is transferred to you when your customer pays us.
For more information on invoice financing with BCashflow Positive, call us at 1300 937 292, or fill out our quick contact form and we will be in touch shortly.