Invoice finance: Good for business

Finance

Struggling to keep up with payments? You’re not alone.

Whether you’re a business owner struggling with cash flow issues, or you’re simply looking to improve your cash flow and your overall financial situation, invoice finance is a great way to make use of your working capital.

Invoice finance can help you get the money you need quickly so you can continue running your business without any interruptions. Keep reading to see if it’s the right solution for your business.

The make or break factor for all businesses

There’s a common concern that’s shared among business owners, no matter their business or industry. It can be the cause of many sleepless nights, furrowed brows and greying hair.

It’s cash flow.

The work’s done. The invoice sent. Now the waiting begins.

Days, weeks, even months can pass without money coming into the business.

Any business owner knows that just because the invoices have flown out, there are no guarantees the money will flow in at an equally rapid rate.

Cash flow is one of the biggest worries for new and even established business owners.

As a business owner, the payment of wages to your staff, payment for services from suppliers and the general health of your business are foremost on your mind.

Delays in cash flow can feel overwhelming when considering those you are responsible for.

Often, these delays are out of your control, owing primarily to other businesses unsuccessfully managing their own cash flow.

This reliance on suppliers and partners place pressure on you, but can also strangle your business’s growth and goals.

But for every problem, there’s a solution.

Invoice finance

Invoice finance allows you to quickly improve your liquidity and get your business back on track.

The sooner you can get your invoices paid, the sooner you can focus on what’s important – growing your business. If you’re finding it difficult to make ends meet, invoice finance may be a good option for you. This type of funding allows businesses to borrow money against their unpaid invoices, so they can have the cash they need available to keep things running smoothly.

Working with an invoice finance provider like Fifo Capital, you can access the money owed to you by your customers before your customers have paid.

You can choose the invoices you want to claim funds against, or establish a facility using all of your invoices. You can access just a few thousand dollars, or up to $2million.

Invoice finance is an increasingly common tool savvy business owners are turning to as a way to avoid cash flow issues.

The benefits of invoice finance

Invoice finance can bring many benefits to your business that traditional bank loan products can’t. Here are just a few.

Flexibility

Invoice finance can cover those last-minute or emergency expenses – think travel, legal or professional fees, equipment repairs or replacement.

It can also be incorporated into your daily operating structure to help you achieve your broader business strategy. You might use your facility to provide for staff salaries, training and education, or scheduled equipment upgrades.

It’s this flexibility that makes invoice finance a popular choice for business owners when managing fluctuations in cash flow.

Fast approval

One of the advantages invoice financing has over traditional bank loans is its speed of payment to your account.

You can have up to $350,000 paid to you within 24 hours, ensuring business continuity (and a significant load off your mind).

Of course, establishing your invoice finance facility before you really need it makes good business sense, particularly for larger businesses needing larger funding from a bespoke invoice finance solution.

Off-balance sheet financing

Off-balance sheet financing is a common accounting practice that keeps certain assets or liabilities, well, off your balance sheet. And everyone loves a healthy balance sheet. It can attract investors or lead to cheaper borrowing costs.

Invoice finance from Fifo Capital can qualify as off-balance sheet financing.

De-risk late customer payments

The flow on effects of late payments to your business can be significant. They can cause the breakdown of relationships between you and your staff and suppliers. It can wreak havoc on your plans for business growth.

Invoice finance reduces that risk. It delivers surety of cash flow in uncertain times and allows business continuity.

Maximise your cash flow

Knowing you have cash at hand is a massive advantage when planning your business activities.

You can use it for the immediate payment of expenses (predicted or otherwise), or invest it into what will help your business grow over the long term.

That doesn’t just alleviate pressure on your business, it lessens the psychological burden on the conscientious business owner who puts their staff and suppliers first.

Debtor insurance

Despite best efforts, businesses fail. The impact of an insolvent business isn’t just felt by the owners and their employees.

When a small business goes under, the ripple effect can reach other local businesses and suppliers. When a large business fails, the destructive waves can be felt in industry across the globe.

This scenario plays out daily as supply chain issues heavily impact trade the world over.

Debtor insurance, available when you take out invoice finance with Fifo Capital, acts as a levy protecting your business in the event your customers become insolvent.

The insurer pays your customer’s outstanding invoices to you, so you can avoid the worry of lost income.

Better finance that’s built for business

More than ever, Australian business owners are looking beyond traditional bank loan products to solve their cash flow concerns.

Invoice finance is a low cost, high convenience option designed to keep the cash coming in and the worry lines away.

And it’s just one of the working capital solutions that you can use to improve your business’ finances and your cash flow.

To learn more about how invoice finance can help your business, contact our team.

 

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