Consistent cash flow is vital for any business. Slow payments and rapid growth can at times affect cash flow and in turn the overall running of your business. Did you know you get instant cash flow by using invoice factoring to convert your invoices into cash? In this article, we will explore how invoice factoring works along with other tips to improve your business cash flow.
How does invoice factoring work?
With Key Factors invoice factoring, it is very easy to get instant cash flow from your invoices. Simply send us a copy of your invoice and we will send you up to 80% of the face value within 4 hours. The remaining 20% is transferred to you when your client pays us, less any accrued fees.
When you use invoice factoring, you give yourself the ability to pay your staff and business running costs, without the stress of waiting for a client to pay their invoice. Business loans from banks can be difficult and time costly to get approved. Some loans can take up to months to get approved and come with high fees, long-term contracts and often are inflexible with their terms and conditions. Factoring, on the other hand, follows the cycles of your business giving you instant cash flow when you need it.
Benefits of Key Factors invoice factoring
Key Factors has no lock-in or long-term contracts or quarterly audits. Additionally, if you are busy looking after your business, Key Factors friendly staff can also assist with the follow up on customer payments on behalf of your company.
Many business owners choose invoice factoring as it allows them to grow their business without the hassle of worrying about cash flow and following up with customers.
Review marketing strategies
Another way to improve cash flow is to review your marketing strategies. A decline in your sales could be due to a poor marketing strategy. To improve cash flow, review the conversions from your current marketing efforts and see where things could be improved.
Arrange longer payment term with your suppliers
Extending payment terms with your supplier is another great way to improve cash flow. Perhaps reviewing whether 30 days term could be extended to 60 days or even 90 days, and asking for a payment term for those who require payments up front.
Set up Invoice Factoring
If late payments or rapid growth is affecting your business cash flow, consider setting up invoice factoring to get instant cash flow from your sales invoices.
Key Factors is transparent about our fees from the very start. Give our easy-to-use calculator a try to see how much cash you can get from your sales invoices and how much it will cost you up front. If you have any questions about invoice factoring and how it can work for your business, just get in touch with us via our contact page or call 1300 884 100.
Apply today, to experience the benefits of instant cash flow.