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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.

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.

Cash Flow Financing Perth
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?

  1. Invoice your clients for goods or services and send us a copy.
  2. Key Factors transfer up to 80% of the invoice face value to your account in as quick as 4 hours, less a discount rate.
  3. 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?

Cash Flow Financing PerthWith 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!

Cash Flow Finance PerthMany 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.

Call 1300 884 100 today to find out more.