BCashflow Positive / Blog

Invoice financing alternatives in wake of credit squeeze

May 21 2019
Invoice financing alternatives

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.

What Our Clients Say

"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

"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

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