Running your own business can be challenging and if you don’t have the right tools or enough business finance to help fund operations, the stress can take a hefty toll on your health and wellbeing along with your company success.
One of the main reasons many businesses fail is poor cash flow. This is unfortunate as it is an easy problem to solve if you have the right knowledge and take advantage of different funding options. Here we will provide you with some valuable information on factoring, a flexible business finance alternative.
A great way you can maintain your business finance is to use factoring to get instant cash upfront by financing your accounts receivable.
How does factoring work with Key Factors?
Improve your business cash flow in 3 simple steps:
- Invoice your clients and send us a copy.
- We transfer up to 80% of the invoice value to your nominated account in as quick as 4 hours.
- The remaining 20% is credited to you when your client pays us.
By getting the cash upfront you can eliminate the stress of the waiting for clients to pay in 30, 60 or even 90 days. BCashflow Positive factoring service also provide account management and follow up of your outstanding accounts at no extra cost. This gives you peace of mind allowing you to focus on doing what you do best which is growing your business.
Factoring allows you to pay your staff on time, instead of having to try and get a business loan from a bank which can take weeks or even months.
You can use factoring to pay ATO bills, office costs, rent, supplier costs and any other expenses you may have in your business. It’s also a good idea to use invoice factoring for those unexpected expenses that pop up from time to time or when your business is experiencing rapid growth and require additional working capital.
If you would like to know more details about how you can use a flexible business finance option like factoring to improve your cash flow, complete our quick contact form or call 1300 884 100 to speak to one of our factoring experts.
One in five new businesses will fail within the first year of business. There are many reasons that a company can fail. Some are out of your control. According to ASIC report on corporate insolvencies 2016-2017, the top 3 reasons why businesses fail is inadequate cash flow, poor strategic management, and poor financial control. Don’t let this dishearten you, we have some excellent advice on how business invoice factoring can help provide adequate cash flow for your new business venture.
How Does Business Invoice Factoring Work?
Invoice your clients for work fully completed or goods delivered and send Key Factors a copy. We will advance you up to 80% of the invoice value in as quick as 4 hours. Once your client pays the invoice in full, we will credit you the remaining 20% less any accrued fees.
How Can Business Invoice Factoring Help My Business?
By using business invoice factoring, you will be able to get immediate cash for your sales invoices. You can improve your cash flow and use it to invest in hiring more staff and buy essential equipment to expand.
Other Benefits Of Business Invoice Factoring
In the early stages of running your business, it is vital to ensure your business is equipped to take on new opportunities. Business invoice factoring can help to maximize your company growth by providing the cash-flow you need to keep the wheels in motion and stay on top of operating expenses.
Key Factors business invoice factoring can increase your working capital and allow you to service larger clients by converting unpaid invoices into cash. You can be more confident in saying ‘yes’ to entering into a contract knowing you will have a more predictable cash flow to service ongoing work.
As your client base grows your staff requirements will also increase. Business invoice factoring gives you the cash readily available to pay your wages on time.
So take the pressure off and concentrate on bringing in the big clients while we take care of your business invoice factoring. Give us a call today on 1300 884 100 or contact us to find out more.