Australia and the Global Recovery: How Your Business Can Prepare

In spite of the incredibly difficult year behind us, Australia’s economy has started to make a recovery. Consumer spending is expected to grow strongly in 2021-22 and assist Australia’s economic recovery, according to Deloitte Latest Access Economics retail forecasts.

Still, there are challenges ahead for many Australian businesses. We will continue to hear of job losses and business closures now that JobKeeper has ended and businesses are once again expected to fulfil ATO obligations.  Companies of all sizes across industries need to have a strategy in place to ensure they have the money on hand to pay their taxes, retain their employees, connect with their customers, and grow their business. For many, this strategy can include cash flow financing.

Preparing for Recovery

Virus mutations continue to be a concern as countries around the world cautiously open their economies, but it is expected that vaccines will help keep those mutations at bay.  In Australia, vaccines could help us achieve herd immunity by the end of the year or early 2022. 

While the global economy is making a swift comeback, led by Asia, it’s important to note this looks very different from industry to industry.  Oil prices have recovered to pre-pandemic levels already, while border closures and travel restrictions continue to impact the tourism, arts, and hospitality industries, and likely to continue to do so for quite some time. In Australia, international travel (both in and out) may not reach its pre-pandemic levels until 2024. 

During the pandemic, the businesses that were able to maintain cash flow were able to survive. In this phase, it’s about increasing cash flow to take the next steps forward.  Whether it is re-hiring employees, increasing inventory levels, launching new marketing campaigns, or ramping up operations.  Cash flow financing can aid with injecting the cash your business needs to plan for the recovery.

Cash Flow Financing from Key Factors

Cash flow financing has been a key cash flow strategy for many businesses, and it will continue to help them move forward. It is a great alternative to traditional bank loans if you require faster access to funds and approval turnaround. When you apply for Key Factors cash flow financing, you will get a response within 24 to 48 hours, and your invoices are funded in as quick as 4 hours.

Cash flow financing from Key Factors is a simple way to get the money you’ve already earned for goods and services delivered, flowing back in your business. Here’s how it works:

1. Invoice your clients, and send us copies of the invoices you want to be funded.
2. Key Factors will credit your account with up to 80% of the invoice value, in as quick as 4 hours.
3. We will transfer you the remaining 20% less any accrued fees, when your client pays us.

That’s it. No property security, no long-term contracts.  Cash flow financing bridges the gap between slow payments, so instead of waiting 30, 60, or 90 days for your customers to pay their invoices, you can get that cash within just a few hours.

How to use Cash Flow Financing to Take Your Business Forward

Different companies use cash flow financing for different purposes. It depends upon your position in this post-pandemic economy and what your priorities are to take your business forward. There are lot of ways to put that cash flow to use:

• Manage your ATO obligations
• Rehire furloughed employees or hire for new positions
• Increase inventory
• Improve negotiating power with suppliers with early-payment discounts or bulk-buying potential
• Improve customer service protocols
• Invest in new equipment or technology
• Launch a new marketing campaign to attract new clients
• Start a customer loyalty program to retain current clients

The Benefits of Key Factors for Cash Flow Financing

As one of the largest privately owned cash flow financing companies in Australia, we put our years of experience to work for you.  With offices in Sydney, Melbourne, Perth, and Brisbane, we work with small and medium businesses all over the country in industries such as IT, business services, labour hire, transport, logistics, and more.  We make it simple for you to access the cash you’ve already earned, and we do it transparently.  The benefits of Key Factors cash flow financing includes:

No Hidden Fees:  We are transparent about fees, so there are no surprises.  Use our funding calculator tool to determine how much funding your business can get and how much it is going to cost. 

No Minimums or Lock-In Contracts:  We fund only the invoices you need, when you need them. 

No Property Security: Cash flow financing is all about getting early access to money you’ve already earned, so we don’t require property security.

No Quarterly Audits or Intrusive Shadow Software: You know what’s best for your business, so we give you the freedom to run your business.

Fast Approval: You will hear from us within 24 to 48 hours of receiving your application.

Fast Funding: With Key Factors cash flow financing you can receive funds in as quick as 4 hours.

Flexible Funding: Use cash flow financing for selected invoices, or all of your invoices.  There is no minimum monthly usage requirement, so you are free to use our cash flow financing service as much or as little as you’d like.

Since 1989, Key Factors has been offering personalised cash flow financing for businesses with an annual sales turnover of $500,000 to $30 million. Our cash flow financing experts are ready to answer your questions and help you get started. Contact us to learn more about cash flow financing and how it can help you recover from the challenges of 2020 and thrive as you move your business forward.

Sources:

https://www2.deloitte.com/au/en/pages/media-releases/articles/retail-forecasts.html

https://www2.deloitte.com/au/en/pages/media-releases/articles/dae-business-outlook-bump-become-grind-120421.html?elq_mid=4732&elq_cid=17235