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.
3 Steps To Getting Your Invoices Paid QuickerFeb 01 2017 in Invoice Finance Company
In just about every business in every industry, cash flow is crucial. And what’s the key to unlocking that cash? It’s the humble invoice.
But are you constantly waiting for your creditors to pay up? It could be that you aren’t following some basic steps when it comes to ending those damaging delays and getting back on track with your all-important cash flow.
Here at BCashflow Positive, we’ve broken down how to get those invoices paid quicker into three basic steps. So let’s get straight into it:
1. Invoice promptly and correctly
If you’re leaving a gap between doing business with someone and actually issuing them with an invoice, then all you’re doing is contributing to the delay in getting paid. Not only that, you’re sending a clear message to your client that promptness might not be something you particularly value.
When writing up those invoices, don’t make mistakes and don’t be vague. If possible, automate the process so that as much human error as possible is excluded and so you aren’t manufacturing your own delays by having to correct mistakes or explain what things mean.
Sometimes, it’s the little things that count – like saying please and thank you. Manners not only cost nothing, they can actually pay you back with respect from your customer and a promptly-paid invoice
2. Follow up on payments
Too many businesses make the mistake of sending an invoice once and then forgetting about it. But if you do that, who can blame the customer for forgetting too? So make sure you send a payment reminder a few days before it’s due, another reminder on the due date, and then some more urgent reminders after the invoice are late.
The easiest way to send reminders is if you use email invoicing. Once you’ve got a valid email address and the right recipient to send to, you know all of those reminders are going to the right place – and cutting down on delays in the snail mail system.
3. Use an invoice finance company and get your invoices paid
Sometimes cash flow is so absolutely crucial to Australian businesses that they just can’t afford to wait for clients to pay in 30, 60, or even 90 days. So just like you need a mechanic when your car has broken down, you could need a service like BCashflow Positive to turn unpaid invoices into instant cash. It takes three minutes to apply online with BCashflow Positive and you will get a response in 24 hours.
Get cash for your invoices in 24 hours
While getting money out of a client, or waiting for those slow-to-arrive due dates, can be difficult and damaging, the process of getting paid with at BCashflow Positive could not be simpler. You invoice your clients as per usual and simply send a copy to us. We’ll give you up to 80% of the value in as little as 24 hours, and pass on the rest once your client pays us.
Here ate at BCashflow Positive, we’re in business because we understand that getting invoices paid promptly is crucial in just about every industry today. Get in touch today by calling 1300 937 292 to speak to a local cash flow expert.