The increasingly conservative behaviour of traditional lenders, as well as an historic real estate slump, are making financing more difficult for businesses all over Australia. This has only exacerbated a far longer-running issue, however. Businesses have long needed alternative financing solutions to what’s available at their primary banking institution.
Long wait times on loan applications, a lack of transparency, and a lack of financial guidance make it difficult for businesses to access the funds they need, when they need them. Moreover, many aren’t even aware of all the financing options available to them, leading them to make sub-optimal financing decisions that impact their ability to compete in their industries. This hasn’t so much been the result of the changing behaviour of lenders, but rather the evolution of businesses, and their role in the global economy. The variety of financing options available to businesses of all sizes has expanded greatly to meet their changing needs. However, most small or new businesses in the country still rely on personal loans, savings, and their homes to finance their growth, and to manage cash flow.
To remedy this, and to help make them viable on an international level, businesses need to be educated about the options available to them from alternative institutions like Fifo Capital, and how to apply these tools to make their businesses more financially stable, and able to sustain growth.
Fast and accessible financing
When businesses are forced to manage a cash flow interruption, they ideally needed the funds in hand yesterday. Similarly, a business looking to pursue a growth opportunity, such as a major new client whose business would exceed their current capacities, needs to be able to access financing as quickly as possible. Traditional loans can take weeks or months to process, which essentially eliminates them as an option in such situations. Instead, businesses can turn to alternative options like invoice financing or supply chain finance.
These allow businesses to consolidate working capital, either by securing an advance on incoming revenue or by delaying outgoing funds. Unlike traditional loans, they don’t require complex loan applications and don’t rely on perfect credit profiles. Invoice finance, in particular, is credit free and therefore requires minimal credit checks. As a result, businesses can often get the funds they need within just a few hours, allowing them to respond to both emergencies and opportunities almost instantly.
Making financing decisions under pressure is difficult, and missteps can quickly become costly. Because of this, a good financial institution should seek to understand, and work to guide business owners to the tools that will help them succeed. Traditional institutions often rely on call centres to provide that guidance, using representatives who may or may not be qualified to provide financial advice. Moreover, any time a business’ financing needs change, they’ll be forced to go through a potentially lengthy and frustrating process to reach an appropriate representative, and explain their situation again from the start.
Fifo Capital deals with this by developing long-term 1:1 relationships with its customers. That means businesses always work with the same expert financial representative, who gets to know them and their business specifically to help them develop the right solutions for their situation. As the business grows and its needs change, they’ll be able to adapt their financing strategies without being forced to re-explain their business to someone new, and can flexibly reach out for support and advice at any time. Because the financial institution relies on the ongoing success of its customers, it’s in their interest to ensure that the right financial expertise customers need to support their success is in place.
Businesses should be able to expect transparency
Long term trust relationships in business rely on great service, but also on transparency. The last thing a business wants to deal with when it’s experiencing financial difficulties is hidden fees or complicated and mysterious business practices on the part of its financial institution. A great financial partner doesn’t need to rely on underhanded tactics to boost revenues, because its costs are easily justified by their customers’ success.
Fifo Capital has no hidden fees, and application processes are as simple as they are fast. By building its business on the long-term success of its customers, it can build long-term relationships that provide far more value than any exploitative tactic. By taking the time to understand clients, and to work with them toward that success, Fifo Capital can offer businesses the financial support they need to grow and succeed. Not only does this provide businesses with the fast, powerful financing tools that globalised businesses need, it also provides them with an expert financial partner who is ready to help them take on the world.