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Why Managing Your Mental Health and Your Cash Flow is More Important Than Ever

Businesses everywhere are under constant pressure to evolve and minimise the impact of COVID-19. Indeed, the stress may be coming from all directions. You might find yourself applying for government assistance for the first time as your business faces financial strain from a cash flow shortage. Alternatively, you might be forced to downsize or face the prospect of closing your doors for good. You might have pivoted your business or started to revamp your activities as the ease of restrictions flow through.

The pandemic has more than financial ramifications: it can take a toll on you and your employees’ mental health. It is more important than ever to know where the business is going by creating a cash flow forecast, and equally important to look after your mental health and that of your staff.

Identifying and Managing Mental Health Risks

Ongoing stress can lead to forgetfulness, indecisiveness, difficulty concentrating, short attention span, irritability, anxiety, depression, anger, insomnia, and increased risky or unhealthy behaviours (such as drinking, smoking, or overeating). Your employees will face stressors you have no control over, but there are work-related stressors you can help control. In fact, you are legally required to protect your workers’ mental health by providing a safe workplace, preventing discrimination and harassment, and protecting employee privacy.

Safe Work Australia has outlined a range of hazards factors in the workplace which can lead to health-related stress to consider:

  • Increased demand on employees: Are they being asked to work longer hours for less pay during the pandemic?
  • Poor support: Do your employees have mental health resources available to them? Do they feel safe to talk to you about their mental health concerns?
  • Poor relationships: Are there conflicts among co-workers that need to be resolved?
  • Poor working conditions: Is your workplace uncomfortable? Have you taken steps to make it as comfortable as possible? Is it safe from physical hazards?
  • Poor organisation or lack of role clarity: Does everyone know what to do and how to do it? Do they understand the importance of their role within the company?
  • Lack of transparency: Particularly during the pandemic, are you being upfront about the state of your company and where your employees stand? Do they feel like their jobs are secure?
  • Traumatic events: Have there been workplace accidents or disasters?

By identifying the hazard risks in your workplace, you can take the steps to mitigate them.

Looking After Yourself and Supporting Your Staff

Whether you are a business owner or a manager, it is important to look after your own physical and mental wellbeing so you can be a pillar of support for your staff.

It’s important that your employees know you care and that you’re open and honest with them during this difficult time. Talk to them to see if there’s anything they need, and provide a list of resources that may be helpful. Beyond Blue offers a mental wellbeing support service with online forums and a variety of resources along with counsellors you can reach via phone or online chat.

As a business owner, you should also take steps to control what you can. While there is a lot of uncertainty, you can still prepare for the future by maintaining contact with your customer base, enhancing your knowledge, and preparing a cash flow forecast so you can have a clear picture of how the business is travelling.

The Importance of Preparing a Cash Flow Forecast During COVID-19

A cash flow forecast is an estimate of your cash flow to ensure you have enough money to meet ATO obligations, pay your employees, maintain your inventory, and more. With all the uncertainty amid COVID-19, it’s more important than ever to know what money you can count on and what you’re going to need for your business to survive the pandemic.

Simple Steps to Prepare a Cash Flow Forecast

There are various financial forecasting software to aid your business with preparing a cash flow forecast. Or you can follow the steps below to prepare a simple cash flow forecast spreadsheet for your business.

  • Choose Your Forecasting Period: Are you forecasting for a month? Three months? With the ever-changing economic environment, you might find it’s more beneficial to forecast monthly, as it gets harder to predict accurately over longer periods.
  • List All Your Income: Consider all sources of income including sales as well as any government assistance or grants you have right now. Review trends from previous periods and note down cash you believe will actually be in your account for the time frame you are forecasting for. Add up the total to get your net income.
  • Note Down All Your Expenses: Your expenses are all your outgoings, like rent, ATO obligations, wages, bills, marketing expenses, bank fees, the list goes on. By adding up all your expenses, you will get your net outgoings.
  • Cash Flow Running Total: To work out your cash flow position, you simply subtract the total net outgoings from your total net income. A positive cash flow indicates that you’ve got more cash coming in than you are spending. A negative cash flow represents the opposite, and you are actually spending more than you’ve got coming in. It’s a good idea in uncertain times to keep a running total from week to week or month to month, to allow you to pick up any positive or negative trends to examine further.

The Advantages of Attaining Cash Flow Finance to Reduce Financial Strain and Stress

Why Managing Your Mental Health and Your Cash Flow is More Important Than Ever

Cash flow finance is one way to reduce business-related stress associated with COVID-19. Instead of waiting 30, 60, or even 90 days for your customers to pay their invoices, you can use cash flow finance to bridge the slow-payment gap and work through the challenging uncertainty of the pandemic. You can pay your employees, cover ATO obligations, and more, with a steady cash flow based on goods and services you’ve already sold and delivered.

With Key Factors cash flow finance, you can get your invoices paid in as quick as 4 hours in 3 simple steps:

  • Invoice your clients and send us a copy.
  • In as quick as 4 hours, we will advance up to 80% of the invoice value.
  • We will credit your account with the remaining 20%, less any accrued fees, when your customer pays us.

Learn More About Managing Your Mental Health and Your Cash Flow

For more than 30 years, Key Factors has been helping small and medium businesses throughout Australia improve their cash flow. We offer personalised service with a simple and transparent process. Our cash flow finance facility also has no lock-in contracts, no minimum factoring volume, no property security, no quarterly audits, and no monthly admin fees. Send us the invoices you require funding for, and you will only be charged for what you use.

Taking care of your mental health has many facets, and reducing your company’s financial stress with cash flow finance can help. Contact us now to find out more and get approval in as quick as 24 hours.

When your business is struggling with the cash flow it needs to grow, or even simply to survive during trying times, it may be tempting to use your house to help you finance your business. A secured business loan might aid in providing your business with the cash injection it needs, but it comes with a high price of potentially losing your home if you can’t repay the loan.

It’s important to understand exactly what you’re getting into if you do apply for a secured business loan, and you should also know there’s another option. With invoice financing, you can use your sales invoices as security to get access to immediate cash flow, instead of using your home to fund your business.

Why take the chance of losing your home when you can simply release cash from your invoices, getting prompt access to money that you’ve already earned? Let’s take a closer look at the difference between a secured business loan and using accounts receivable as collateral to finance your business.

What Is a Secured Business Loan?

When you take out a secured business loan, you have to offer some form of assets as collateral. Assets commonly used for a secured business loan are a commercial property, residential property, vehicles, and equipment. In some cases, banks tend to also take a blanket security over all the assets of the company.

Secured loans make the transaction less risky for the lending institution, as they can take the asset to recoup any losses when you are unable to make your loan repayments. Business owners who use their home as collateral can run the risk of losing their home if they default. If the bank or lending institution has a blanket security over all the assets of the company, you could also run the risk of losing your business as well.

Key Factors invoice financing does not require property security, or a blanket security over all the company’s assets. It is a great option for those business owners who are seeking a more flexible business finance option.

What Is Invoice Financing and How Does It Work?

Invoice financing is a way to create cash flow based on your outstanding invoices. In other words, it gives you access to the money you’ve already earned for the sale of goods delivered and services rendered before your customers pay their invoices. It bridges the slow payments gap and allows you to pay your bills, cover ATO obligations, buy more inventory, and pay wages on time.

 With Key Factors, the invoice financing process is simple:

  • Invoice your clients as normal and send us a copy
  • In as quick as 4 hours, we can advance you with up to 80% of the invoice value
  • We will then credit your account with the remaining 20%, less any accrued fees, when your customer pays us

For more than 30 years, Key Factors has been helping small and medium businesses improve their cash flow with invoice financing. We make the process simple and transparent with no lock-in contracts, no quarterly audits, and no minimum factoring volume.

Key Factors Invoice Financing Security Requirements

Key Factors takes your accounts receivables as collateral, so you don’t have to put your house or other properties at risk.

Business owners using commercial or residential property to fund their business should look into invoice financing to free up their assets.

Your invoice financing facility can also be set up in conjunction with your current financial arrangements, as security is only taken over the receivables and not over all the company’s assets.

Benefits of Invoice Financing Compared to Secured Business Loans

It’s important to explore your business financing options, particularly as there are some distinct benefits when comparing invoicing financing with a secured business loan.

The Key Factors invoice financing difference:

  • No property security.
  • You can get an approval with Key Factors in as quick as 48 hours, compared to banks or other lenders where you could be waiting weeks for a response.
  • There are no monthly interest repayments or admin fees, and you will only pay for what you use.
  • We are transparent about fees from the very start, so you’ll know how much each transaction will cost.
  • There are no minimum monthly factoring requirements, so you’ll have the flexibility to send us as much or as little invoices for funding as you need.
  • There is no lock-in contract and no minimum term, unlike secured business loans.
  • Funding for invoices in as quickly as 4 hours.
  • Our friendly local team is only a phone call away.


Key Factors have been offering customised invoice financing solutions to Australian businesses since 1989. We are the country’s leading independently owned invoice financing company. We credit that to our dedication to delivering a seamless customer experience, our commitment to a transparent process, and our wonderful staff, who truly care about helping small businesses succeed.

If you are a business owner that simply wants to explore your options and has a monthly turnover ranging from $50,000 to $4,000,0000, invoice financing may be an ideal solution for your business. Contact us today by calling 1300-884-100 or fill out an enquiry form and an invoice financing expert will be in touch to discuss how you can improve your business cash flow without using your home as collateral.

Factoring FinanceThe latest statistics for debtor finance, discounting, and factoring finance in the December 2014 quarter released by the Debtor & Invoice Finance Association (DIFA) was $17.2 billion, which is an increase of 10.7% in comparison to the September 2014 quarter.

NSW & ACT, followed by VIC, QLD, & WA were states with the highest invoice factoring turnover, in the December 2014 quarter.

Industries with the highest percentage of factoring turnover includes Labour Hire making up 29%, Wholesale Trade 22%, Manufacturing 13% and Transport & Storage 13%.

As SMEs continue to experience challenging business environments, factoring finance to free up working capital provides an alternative and immediate source of business cash flow to meet sales demand and operating expenses.

By adopting invoice factoring companies can get cash for their unpaid invoices, in as quick as 24 hours.

The full DIFA Statistical Update- December Quarter 2014 is available at:

Key Factors fast and flexible factoring requires with no lock-in or long-term contracts, no minimum volume or usage and no quarterly audits.

Getting your invoices paid is as easy as 1 2 3

1) Simply invoice your clients and send us a copy.

2) Up to 80% on the invoice face value is made available in as quick as 24 hours.

3) The remainder 20% is provided when your customer pays.

Contact us at Key Factors, on 1300 884 100 and a local state manager will be more than happy to discuss your factoring finance needs and provide you with a quote to suit your requirements today.

Business Cash FlowIt is one of those classic problems that plagues SMEs – Business Cash Flow. A business can be technically doing well, receiving lots of orders and keeping their costs low, but if the cash isn’t flowing in at the right rate and at the right time that’s when the problem arise.

For example many services and wholesale products are sold on a credit basis with terms between 14-30 days, however payments can take up to 60 or even 90 days. Depending on the nature of the business, slow payments can have a major impact on cash flow.

Debtor Finance can help alleviate cash flow issues arising from slow payments, limited working capital and rapid expansion by providing a business with constant cash flow. To put simply, accounts receivables is an asset that can be brought forward with the help of a debtor finance company like Key Factors.

Improve your business cash flow with 3 easy steps:

  1. Send Key Factors a copy of your invoices as the need for cash flow arise
  2. 80% of the invoice face value is made available to you in as quick as 24 hours, less our fee.
  3. Remainder 20% is provided to you when your customer pays, less any accrued fees.

How Key Factors can help improve your business cash flow

Key Factors have been helping Australian improve their business cash flow since 1989. We also help businesses follow up on accounts at no extra charge, allowing business owners to focus on what they do best which is growing their business. Key Factors has helped various industries including Manufacturing, Wholesale, Labour-Hire, Recruitment, IT services, Commercial Cleaning, Mining, Business Services, Transport and Logistics improve their business cash flow.

Call 1300 884 100 now to speak to a friendly cash flow expert and improve your business cash flow today!