Traditionally, for SMEs looking to finance their business it was necessary to use a large chunk of personal collateral as security. In many cases this linking of personal and business finances led not only to more stress, but sometimes, day to day concerns like waiting for invoices to be paid, could have a damaging effect on the personal lives of the business owner and their families. Worst case, families have lost their home or other significant assets due to their personal finances being linked with that of their business.
A client of ours came to Apricity after a particularly devastating experience. His business provided building maintenance to a number of retirement villages. He was using an overdraft to finance his business and when he lost his biggest contract, he was unable to repay the overdraft and consequently lost his house.
Thankfully, with non-bank alternatives leading the charge, SMEs now have access to a wide range of business led funding options that don’t put at risk their personal assets.
Invoice finance a great example of how the assets of a business can be leveraged to secure finance. An invoice finance facility gives the business access to the funds from their invoices as soon as they are approved. This can help create cash flow certainty and the ability to plan for the future – without taking on debt or putting the house at risk.
Why consider an alternative lender?
- Size – alternative lenders are often smaller businesses themselves meaning they better understand the needs of your business
- Less personal risk – the focus of the alternative lender is on the business itself, in the case of invoice finance the assets are your invoices rather than your home
- Less red tape – simple application processes, usually online with quick turnarounds ‘Do I qualify?’
- More flexibility – there are many alternative finance options in the market but look for one that does not lock you into contracts, sting you with facility fees or impose concentration limits on your invoices.
Why invoice finance is the right choice for growing SMEs
A business experiencing a period of rapid growth or taking on a new business opportunity faces many challenges. Finance may be needed to increase staff numbers or purchase new stock or equipment. However, businesses must be cautious about taking on additional debt during a period of uncertainty and plan for the long term.
Until recently, businesses looking to take advantage of a growth opportunity would have needed to visit to the bank; perhaps taking out another loan or re-mortgaging the house – resulting in more debt and further risk.
A reliable invoice finance facility can have a stabilising effect on the cash flow of your business. Rather than being under the cloud of servicing a debt, you may find you are in better control of your financial situation.
An invoice finance facility leverages the working capital assets of your business. By getting your own money back into the business sooner it can be reinvested, creating a larger return.
Is Apricity Invoice Finance right for my business?
An Apricity Invoice Finance facility is ideal for businesses providing goods or services to high credit customers. These may include; government, major telcos, supermarkets and infrastructure businesses, hotel chains, importers/exporters and distribution companies.
Our facility can be used as little or as much as your business needs, meaning you can scale up or back to meet your obligations. There are no lock in contracts or fees and we do not ask for personal assets as collateral. Our relationship with you is what sets us apart in this industry – we are here to help you grow.
Find out if you an Apricity Invoice Finance is right for your business.