We recently exhibited at the GEA Supply Chain Expo. This was a fantastic event, where we made contact with a number of businesses across a wide range of industries including mining and mining services, manufacturing, transport and logistics, professional services and many more.
Following the event we ran a quick survey as we are always interested to keep a pulse on small to medium businesses greatest challenges in their day to day business.
Long dated invoices to big businesses was seen as the biggest cause of stress to businesses in the Bowen Basin region. Second, was difficulty in securing clients or contracts.
To us, these two really seem to go hand in hand. One report has suggested that businesses owners spend up to 52 days per year chasing and collecting late invoices. That’s one day every week. Just imagine how much you could achieve if you had an extra day every week to spend on growing your business and winning new clients.
It was interesting to note that 20% of respondents currently use Invoice Finance. Businesses that utilise Invoice Financing speak to us about the array of benefits it provides their business; from the flexibility it offers, to various cash flow shortfall solutions and the alleviation of stress in many different scenarios.
These businesses are not alone – according to some reports, only about half of Australian small businesses are cash flow positive in any given month. Tight cash flow makes it hard to pay bills, hire staff, buy inventory, or expand. And it stresses business owners out – keeping them up at night
Whether it’s a rapidly growing business struggling to pay wages while they await payment, or more established businesses needing to bridge a gap between periods of supplying goods and having invoices paid, Invoice Finance has become instrumental to their growth and continued expansion.
In terms of what products businesses are using to assist with cash flow, bank overdrafts was number one followed by credit cards and personal loans. These have traditionally been the go to products for business. However, as banks tighten lending practices, more and more businesses are finding it difficult to secure finance when they need it. Not to mention that an overdraft will require property as security? What if you have already exhausted your resources in that area. What now?
We have a strong track record in helping businesses with their Invoicing Finance needs. One of our mining services clients shares his experience in working with Apricity Finance:
“We experienced a rapid growth in demand for outsourced trades labour hire. As our specialist trades need to be paid fortnightly, we quickly needed to source a new funding stream as we had already invested much of our capital back into our business for growth. Unfortunately, the banks were unwilling to help us with this next growth opportunity, so we were at a stalemate.
Fortuitously, at this time we connected with Apricity. That call absolutely saved us.
Since then we have seen a 500% growth in trades labour and it’s still growing. We have had a number of new clients come on board because they know we can provide the quality labour they need. We recommend Apricity in the strongest possible terms. They are professional and their responses rapid. It has been a godsend to us and continues to be.”
With Apricity invoice finance, you can draw down up to 95% of invoices upon approval and you choose when and where you need to leverage finance. Read more customer stories on how we have helped their businesses.
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