Not being in control of your business’ finance can be a frightening thought. Working on credit, trying to meet payroll and tax commitments plus trying to invest back into the business to grow, creates an uncomfortable situation.
AddCash Finance creates a faster alternative for borrowing money by allowing businesses to access up to 80% of their outstanding customer invoices up front. This can free up cashflow immensely and reduce the sleepless nights.
There are six key signs that your Client could use AddCash Customer Invoice Finance:
1. Slow Paying Debtors
This creates what is commonly called the “Cash Gap” whereby you need to pay your suppliers, employees and the ATO before you get your money from your Customers. AddCash Finance is realistic and understands that debtors can take time to make payments because they are waiting for payments themselves.
2. ATO arrears
This is becoming more common as the cash that should be put to ATO payments gets swallowed up by making sure your suppliers and employees are paid on time. This leaves many companies owing large sums to the ATO.
3. Rapid Growth
As the business grows so does the number and value owing from debtors. This is especially the case when a new supply contract is won and the business needs to gear up with new employees, equipment and stock. Turning away business because of a lack of capacity is bad business.
4. Equipment purchases
Customer Invoice Finance is also a way to ensure lease/chattel mortgage repayments are made on time and removes the stress of Customer payments not coinciding when these significant repayments automatically come out of the business bank account.
5. Lending Restrictions from Banks
Banks typically restrict funds to the value of property security and when there is no further security there is no more funding. AddCash Finance does not require property security and focuses on your Customer invoices. Banks tend to look at your past two years history to determine how much money they will lend you. AddCash Finance puts more emphasis on what you currently have on your books rather than what has happened historically.
Businesses that generate most of their income in one part of the year must carefully and diligently manage expenses, or they run out of funds to fulfill the influx of orders that come with the next season. AddCash Finance has assisted many businesses that are very seasonal such as wine grape harvesting, holiday merchandise, fashion wear, food production and related services like refrigerated transport.
Recognising the signs early and finding the right solution is important, to ensure that the business can function and grow without financial stress. Thus, allowing for confidence in financial decision making now for the business benefit of the future.
“It was a period where we were expanding quite heavily. We needed a place that could do ‘factoring’ so we could improve our cashflow. My financial adviser found AddCash and said I should talk to them. What they offered really suited us. It allowed us to grow instantly without worrying about money. We’d send them the invoices and the next day we’d have the money. It was perfect.”
- Andrew Elliott, Elliott Mining, Mackay QLD
AddCash Finance is a specialist when it comes to Customer Invoice Finance. We work to provide solutions for all businesses rather than focus exclusively on those who can offer bricks and mortar security and have consistent financial results. We encourage young and new business owners to partner with us so they can access finance that allows them scale based on their talent and not unrelated property valuations. Contact us today.