Maintaining healthy cashflow is a constant concern for small and medium-sized businesses, and often a key point of stress for owners and managers at the helm of these kinds of companies. Payment periods for invoices have crept up over the years, and it’s not uncommon to see large businesses and government departments paying their small business contractors after 30, 60 or even 90-day periods. A recent inquiry by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) found that Australian businesses have some of the longest wait times in the world. This can put enormous pressure on a businesses’ cashflow, which is where invoice finance, or invoice loans, may be able to help.
INVOICE FINANCE CAN BOOST YOUR CASHFLOW
In order to keep everything moving and working like it should, businesses need reliable cash flow. On paper, many businesses seem like they should be successful. They win big contracts, even government tenders, and yet they are always struggling with cash flow. This is often because of those long payment periods. This can leave small businesses without the money they need to tender for new business, pay employees, and keep businesses afloat. If only there was a way to access the money you knew your business would be paid, only earlier.
THIS IS WHERE INVOICE FINANCE CAN HELP
Invoice finance (sometimes called debtor finance or cashflow finance) is essentially a finance facility made available through third-party invoice financing companies, such as Apricity Finance. In many cases, the only ‘collateral’ you will need to offer up is the owing invoice. For a fee, the invoice financing company allows you to access money owed quickly in order to keep your cash flow moving. Think of it like cash flow finance, supporting your business while you wait for large clients to pay.
THE BENEFIT OF CASHFLOW FINANCE
Imagine a small business that has done work on a government tender worth a significant amount of money. The tender may pay out a small portion at milestones throughout the contract, but it is just as common for these contracts to pay out months after work is completed. In those months, businesses need cash flow. By borrowing through invoice loans, they can pay their employees, settle any outstanding payments to avoid late fees and charges, invest in their company’s ability to get future work and plan for the months to come. Without cashflow finance, businesses stagnate. They can’t move forward, and their reputation is being slowly eroded by their inability to pay their bills on time. The true benefit of invoice finance is that it allows companies to continue doing what they do best without worrying about the extended payment periods of the businesses and organisations they work with.
ORGANISING CASHFLOW FINANCE WITH APRICITY
If you’re looking for a reliable partner to facilitate your cash flow finance, you are in good hands with Apricity Finance. Apricity is an invoice financing company that understands the struggles small and medium-sized businesses face when keeping business moving. We know first hand of the benefits that invoice financing can bring when dealing with cash flow stress. We provide a highly personalised service the need to put up your home or personal assets for security.
When you choose invoice finance with Apricity Finance, you’ll speak to a dedicated consultant who will not only explain the process of cash flow finance, but also help you understand your eligibility and what you need to do. If you are eligible for invoice finance with Apricity, you can have the money in your company’s account upon approval of invoices, leaving to free to manage and grow your business.
So, if you have cash flow woes, talk to Apricity Finance and see what a difference invoice finance can make for your business.
You can get in touch with us today to see how we can improve your working capital with our cashflow finance solutions, how invoice finance works and how we compare. Contact Apricity Finance, and ask about our invoice factoring service now.