BCashflow Positive / Blog
Running a business can be rewarding but also challenging. What COVID-19 has shown is that companies must be positioned to quickly adapt or run the risk of going out of business. More than ever businesses need financial solutions that are more agile, to allow them to pivot their operations and adapt to any economic conditions. Instead of resorting to traditional rigid business loans, companies should explore an agile and flexible funding solution such as debt factoring.
Debt factoring breathes with your business and funding is more closely aligned to sales. As your business grows so can your debt factoring facility and access to funds.
The exposure to the factoring company is only ever a percentage of your factored sales at a point in time, which reflects where the business activity is throughout the year. As the business grows so do the sales, and as it contracts so do the sales.
Should the business retract, a fixed business loan does not adjust accordingly. It was most likely taken at a time of growth and as such reflects the business at that previous point in time. Repayments must be met but the circumstances of the business have changed, and it might be difficult to maintain your cash flow throughout this time of reduced activity.
The money you can get from debt factoring your invoices allows you to stay operational during the quieter times and scale-up production or staff for the busy times.
Unlike a loan, debt factoring allows you to access an untapped asset, your accounts receivable and bring it forward. Instead of waiting for up to 90 days for your clients to pay, you can cover the gap by converting your unpaid invoices into immediate cash.
Unlike traditional business loans where security is normally taken over property, plant, equipment or even a blanket security over all the company’s assets, debt factoring only takes security over the accounts receivable.
Debt factoring focuses more on the strength of the debtors and the quality of the ledger, so it can also be a suitable option for start-ups and turnaround companies.
BCashflow Positive debt factoring facility does not require quarterly audits and there is no intrusive shadow software. We give you the freedom to run your business.
We at BCashflow Positive understand the need for SMEs to manage their cash flow pressures during these uncertain times. We provide a consistent funding solution for companies with a minimum funding requirement of $100,000 a month. And we offer a flexible ‘pay as you use’ funding solution via Key Factors for businesses who are looking to have a cash flow buffer with no-lock in contracts. This allows businesses of varying sizes the ability to withstand any economic conditions and prepare for the future.
BCashflow Positive simplifies the debt factoring process by converting your sales invoices into cash in 3 simple steps:
1. Invoice your client and send us copies of the invoices you want to be funded.
2. BCashflow Positive will advance up to 90% of the invoice value in as quick as 4 hours.
3. The remainder 10% less any accrued fees is credited to you when your client pays us.
Now is the best time to review whether your lender is flexible and responsive to your business needs. In these challenging times, it is crucial to have the right financial partners and financial products backing your business.
With over 30 years of experience, BCashflow Positive has become a leading factoring company in Australia. Our goal is to assist our clients at every stage of their business with transparency, flexibility, and top-notch customer service.
We are transparent about fees from the very start so there are no surprises. Give our pricing calculator a go to find out how much funding you can get, and exactly how much it is going to cost.
BCashflow Positive acts as an extension of your accounts team by helping to monitor your debtors and their accounts. We also help follow up on payments and send statements of factored accounts to your clients.
Understanding and limiting your customer’s risk is an essential part of what we do. BCashflow Positive uses the latest risk-management technology to advise you on your debtors’ creditworthiness. We also provide our clients with free commercial credit reports to help them assess whether they should extend credit to a customer.
To find out more about how to keep your business finance agile and improve your cash flow contact us today, or call 1300 937 292 to speak to a debt factoring expert.
"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"
"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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