Businesses should explore invoice financing as a credit crunch loom

Oct 26 2018 in Business Cash Flow, Invoice Factoring
Credit Crunch

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.

What Our Clients Say

❝Getting instant funds from our invoices is crucial to our business success. It means we can pay wages on time and grow our business. The staff are also great to deal with.❞Owner, Recruitment, NSW

❝We engaged BCashflow Positive to get on top of our ATO obligations. Constant cash flow allows us to meet our operating expenses and grow our business.❞Accountant, Earthmoving, QLD

❝Our facility provides us with the buying power we need to stay competitive, and maintain growth. From day one, BCashflow Positive have been very friendly and professional to deal with.❞Managing Director, Wholesale Company, VIC

❝We used BCashflow Positive when our bankers didn’t want to know us, as we operate in an industry that was going to be affected by the introduction of the carbon tax. Traditional lenders were unable to deal with the uncertainty and risks.
BCashflow Positive understood the risk and assisted us with our cash flow, which was great❞Financial Controller, Solar Manufacturing Company, WA

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