Many businesses are finding that their banks are restricting their ability to expand or growth their business due to the strict lending criteria. An excellent alternative is debtor finance or invoice finance. Contrary to popular belief that debtor finance is used by companies in financial trouble, it actually provides businesses with a steady and flexible source of funds. It is a process to grow your business - it is not a loan or an overdraft.
Invoice financing can:
- Improve on cash flow and help your business run smoothly
- Access funds quickly to capitalise on business opportunities as they arise
- Fund business growth with increased working capital
- Increase your purchasing power and improve supplier relationships
- Reduce personal exposure to the business and the risk of losing the family home. No real estate security required
Benefits of invoice finance:
- Businesses can get up to 90 percent of their invoice value within 24 hours
- No real estate security required
- No red tape application process
- Flexible facilities
- Tax deductable fees
- You maintain control
- Rapid source of funds
- Funding available for almost every business
Businesses suited to invoice financing include any of the following:
- Manufacturing businesses
- Wholesale trade
- Property or business services
- Recruitment agencies or businesses that specialise in labour hire
- Agriculture
- Mining companies
- Transport and storage companies
- Panel repair shops
Before getting an invoice finance facility, speak to a mortgage broker first to ensure this is the best option for you. A mortgage broker will be able to find an appropriate business cash flow solution from their panel of approved mortgage lenders. They will find a finance solution that suits your business needs and circumstances.
