Steady cash flow is vital for all successful businesses. Have you considered cash flow finance for your small business loans Australia? It is the difference between being able to pay off debts and growing your business, and struggling to keep things running efficiently enough to keep your business alive.
At Key Factors, we know how challenging it can be to run your business smoothly and manage your accounts receivable – that’s why we’re here to help.
How can cash flow finance benefit small business?
Cash flow finance allows small businesses to sell their invoices at a discount to a debtor finance company like Key Factors so that they get paid for them upfront. This means businesses don’t have to wait up to 90 days and can get instant access to working capital by converting their credit sales into cash.
With Key Factors, cash flow finance for small business loans Australia, the cash you receive is aligned with your sales – so the more sales you make the more cash you can get. In addition to giving your small business cash flow a boost, you can also cover the gap of slow payments, pay off expenses, meet ATO obligations, and most importantly grow your business.
How does cash flow finance work?
Invoice your clients for goods or services and send us a copy.
Key Factors transfer up to 80% of the invoice face value to your account in as quick as 4 hours, less a discount rate.
The remaining 20% is provided when your customer pays, less any accrued charges.
Flexible cash flow finance for small business loans Australia
Key Factors cash flow finance for small business has no lock-in or long-term contracts, no ongoing monthly charges or annual charges. There are also no quarterly audits and no property security required.
Contact us at Key Factors, on 1300 884 100 and a local state manager will be more than happy to discuss your needs and provide you with a quote to suit your requirements today.
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.
Christmas should be all about enjoying a relaxing time with friends and family – the last thing you need is to spend the festive period worrying about whether your business will survive the New Year!
Many businesses discover their income slows over the festive season, but remember, that doesn’t mean your outgoings will come to a halt. Make sure you are prepared for all your regular payments, such as payroll and rent. It is easy to get ahead of ourselves with opportunities the New Year holds, but be careful to cover your daily payments first.
Depending on your sector, Christmas could be a busy time of year, or on the other hand, you could shut down for a number of weeks. Either way, you will usually be awaiting unpaid invoices, or have ordered and paid suppliers before your sales are made – this is where problems arise and issues need to be overcome quickly to avoid bills piling up.
It’s time to get savvy and avoid putting your business in imminent danger. There are some basic rules to keeping on top of your cash flow, but over the festive season, not sticking to them could be the make or break of your business. These rules should be nothing new, but we have found it is simply about being persistent, sticking to the basics and making sure you are prepared!
Simple steps to follow before the festive season hits:
Budgeting:Firstly, forecast your cash needs. Get a clear idea using realistic information – facts, figures and historical evidence are key to avoiding unrealistic budgets that your business can’t stick to.
Set strict payment policies:Many businesses are generous when they first start out, with no penalties for late payments. We believe that setting timely policies from the word go will show your customers that you mean business and makes sure they understand there will be consequences. The results of not doing this will mean having to offer early ‘Christmas payment discounts’ and other bonus’s to make sure you are paid on time and even then, there are no guarantees.
Bill quickly:The quicker you work on your end, the quicker you should receive payment – it pays to keep on top of every invoice.
Avoid impulse buys:Stick to necessities and don’t leave money in unnecessary stock – take regular stock takes and keep on top of products, cash locked up in stock could be put to good use.
Release your cash tied up in unpaid invoices
Even the most pro-active businesses can still struggle with cash flow, especially around the holidays. But this doesn’t mean you have to wait until you are forced to come up with a solution. Being prepared is a huge part of the battle. There are many alternative cash flow solutions, including factoring, which can release your tied up cash for very little cost.
New Year, fresh start
Wouldn’t you love to start the year as you mean to go on? With all the cash you’ve worked so hard for in hand, books up to date and nothing owed.
The Christmas break offers you time to reflect on your business goals. With all the motivation the New Year brings, it’s the perfect opportunity to assess how your previous year has gone, look at the results, review your cash flow and decide on your aims for the future. If you’re planning an expansion or to branch out the business, now is the time to discuss whether it is financially plausible.
How to avoid the inevitable
Be ahead of the game – issue invoices on time, make sure you have all reminders set before it gets too late and organise notifications for overdue invoices.
Remember, it is still not 100% guaranteed your invoices will be paid on time, even if you send notifications and charge for overdue payments. It is more a case of factoring these elements into your prediction and to have a buffer prepared for the circumstances. If you are already doing everything you can, but struggle with meeting payments on time due to tied up cash, factoring could be an option for your business. Having money locked up in unpaid invoices can lower the value of your company and prevent future growth and development.
Why use Key Factors?
Key Factors have been industry leaders for 26 years, offering expertise and reliable cash flow solutions. Plus, with no hidden fees and no minimum volume, you can use us if and when you need to.
Unlike many of our competitors, we are looking out for our clients, offering fast approval and no ongoing monthly or annual charges. We focus on simple, flexible alternative cash flow solutions so that you can focus on spending the holidays enjoying yourself, awaiting the New Year without worry.
We want your business to have the ability to meet it’s true potential all year round.
With over 30 years of experience and offices in Sydney, Melbourne, and Perth, your business is in safe hands.