Businesses everywhere have been feeling the pinch delivered by COVID-19. Whether you’re asking to shorten hours, how to stay open, how to protect employees, and retain customers—these types of questions keep business owners up at night. Most of these decisions are centred around one primary problem: cash flow. Small businesses especially are dealing with cash flow problems right now, and the big banks haven’t been much help.
Traditional lenders are taking weeks to process and approve loan applications, and that is precious time businesses simply don’t have right now. That’s why many Australian companies need to look into alternative funding solutions like small business invoice factoring. Instead of waiting weeks for approval from the banks, small business invoice factoring can provide you with an approval and solve your cash flow problem—as quickly as 24 hours.
Banks Are Taking Too Long to Approve Loans
ANZ Bank recently admitted that it now takes up to four and a half weeks to approve loan applications. The effect of Coronavirus combined with extremely low-interest rates has resulted in a high volume of applications that banks aren’t prepared to handle. It has become such an issue that Prime Minister Scott Morrison has started putting pressure on banks to speed up small business loans. The banks have a big role to play in helping Australian businesses through this crisis, but they haven’t been able to rise to the challenge.
In the meantime, business owners may be better off to turn to alternative funding solutions like small business invoice factoring.
What Is Small Business Invoice Factoring?
Small business invoice factoring is a fast and simple way to boost your cash flow. It helps cover the gap between when you invoice your clients and when you will get paid. For businesses where customers can take 60 or even 90 days to pay, covering this gap is critical in having cash flowing through the business.
Given the challenges that everyone is currently facing with COVID-19, many businesses are not able to pay their invoices any sooner than they have to. That’s waiting up to 3 months for your own money—money you need to pay employees, cover your bills, and keep your business going.
With small business invoice factoring with Key Factors, you can get the money you’re owed more quickly:
- Invoice your clients and send a copy to Key Factors, your small business invoice factoring company.
- In as quickly as 4 hours, you’ll receive up to 80% of the invoice value.
- Key Factors will credit your account the remaining 20%, minus any accrued fees when your customer pays us.
How Long Does It Take to Get an Approval for Invoice Factoring?
Businesses applying for invoice factoring can expect to get approval from Key Factors in as quickly as 24 hours, not four and a half weeks like the banks. You also won’t be kept in the dark like the traditional loan process; in stark contrast, you will be kept informed throughout the whole process.
From the initial enquiry to the funding of your invoices, you will be guided by a cash flow expert who will take the time to understand your business to determine the best cash flow solution to suit your individual needs.
Aside from our fast approval and personal service, Key Factors also takes pride in being transparent about fees from the very start, so there are no surprises. Simply use our Fee & Funding Calculator to work out how much funding your business can get, and how much it is going to cost.
Who Can Benefit From Small Business Invoice Factoring?
Whether you are a recruitment labour-hire company for the health sector, a commercial cleaning business, a telecommunications contractor, a manufacturing business that has pivoted your operations to adapt to COVID-19, or simply a company with a high level of customers on accounts waiting to be paid, small business invoice factoring can help.
How small business invoice factoring can help your business:
- Improve working capital and cash flow.
- Bridge the gap of slow payments.
- Key Factors will not only fund your invoices we will also help you collect them. This helps to free up your accounts team time to focus on other tasks.
- Achieve greater negotiating power with suppliers.
- Keep employees in their jobs during COVID-19.
- Take advantage of early payment discounts and bulk buying opportunities.
Flexible Small Business Invoice Factoring
At Key Factors, flexibility is key. No two businesses are alike, so no two invoice factoring solutions will be alike. We make it as easy as possible for you to get access to your money. This is what has allowed us to help many businesses all over Australia improve their cash flow since 1989. The key difference that sets our invoice factoring service apart are no:
- Lock-in or long-term contracts
- Minimum volume—you can use as much or as little as needed
- Quarterly audits or property security
- Ongoing monthly charges or annual charges—you will only be charged for what you’ve used
- Application fee—only pay a document preparation fee on acceptance of your approval
Learn More About Small Business Invoice Factoring
These are unprecedented times, so the last thing any business needs is more complications. With Key Factors small business invoice factoring, the application process is quick and simple. Our transparent fee structure lets you know exactly what you’ll pay, and you can send us as many or as few invoices for funding as you’d like.
Simply fill out our contact form or call 1300 884 100, and one of our small business invoice factoring experts will be in touch shortly. They’ll guide you through the application process and answer any questions you may have. Once your application is submitted, you will receive a response within 24 to 48 hours.
For more than 30 years, Key Factors has been creating customised cash flow solutions with a personal touch for businesses all over Australia. We strive to create a simple and stress-free experience. We understand what Australian small businesses are going through right now, and we’re here to help companies who need quick access to funding. If you’d rather have a response to your application within 2 days instead of waiting for more than 4 weeks, talk to Key Factors about small business invoice factoring today.