Changes To JobKeeper: How To Mitigate The Impacts Using Factoring Finance

Jul 22 2020 in Invoice Factoring
factoring finance

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.

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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