The Big Squeeze on Small Business

Jun 19 2019 in Invoice Finance, Invoice Finance Company

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.

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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