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Cashflow finance allows you to convert sales invoices into cash without needing to wait for up to 90 days for your clients to pay. Whether you’re wanting to grow your business or just have a more regular easily accessible cashflow to cover overheads, cashflow finance is the answer.

How does cashflow finance work?

Key Factors Pty Ltd

How much does cashflow finance cost?

With Key Factors’cash flow finance, we only charge a flat daily fee of 0.1% per day, which is only payable if you use it. As an example, on a $1,000 invoice which is paid 30 days after it is factored, the total cost incurred would be $30 (3%). There are no monthly admin fees, annual fees or early exit penalties.

What are the advantages?

Some clients can take up to 90 days to pay, which can put a strain on your business cashflow. Cashflow finance enables you to get immediate access to cash tied up in your unpaid invoices, so you can get on top of ATO obligations, meet employee wages, and most importantly grow your business.

You never know when your business is going to have a financial emergency, requiring urgent access to cash. Flexible cashflow finance provides you with you peace-of-mind by converting your sales into cash in as quick as 4 hours. Additional cashflow can be beneficial to your business, allowing it to grow, avoid interruptions and challenges and cover the gap of slow payments from customers.

Cashflow Finance For Small Business

The main advantages of financing from Key Factors are:

  • No minimum monthly usage requirement and you will only be charged for what you use.
  • No lock-in contracts and no early exit penalties.
  • No quarterly audits and no property security.

Running a business can be very time consuming, and you often don’t have time to chase clients for payments. With Key Factors’ cashflow finance we will also help with the follow up of accounts, saving you time and stress.

How do you qualify?

Companies benefiting from Key Factors flexible cashflow finance service generally have a high level of customers on accounts for the provision of goods or services and have an annual sales turnover ranging from $500,000 to $30 Million.

 

Apply online

A significant benefit of Key Factors’ cashflow finance facility is the easy online approval process, meaning you can apply for finance 24-hours-a-day and 7-days-a-week.

To find out more about cashflow finance and how it can improve your business cashflow, contact Key Factors today. We can discuss a tailored solution to suit your business needs and arrange approval in as quick as 48 hours.

 

Regardless of the size or type of business, having problems with cash flow is a major concern. Even if a business is currently profitable or showing strong projected growth, if expenses are not covered, the growth may be stunted long-term.

Want to improve your working capital? Here’s how to increase cash flow in your business in eight different ways.

Business Cash Flow1. Come up with a cash goal and supplement it with a cash flow projection

Proactivity is the name of the game, so begin with setting a clear cash goal. It is vital that you are aware of the funds required to take your business to where you desire, or to place it in the competitive position it needs to be. Do this by carrying out a cost analysis and establish your break-even point well in advance. Every month, complete a profit and loss statement, a cash flow statement and a balance sheet – these three documents will give you an in-depth view of the health of your business finances, allowing you to prepare for the inevitable highs and lows of cash flow for the coming months.

2. Add a ‘PAY NOW’ button to your emails and invoices

A quick tip of how to improve cash flow quickly is to make it easier for your customers to pay you immediately. A ‘Pay Now’ button can be added to invoices and emails, meaning customers are one click away from payment. This simple button that links to your online payment platform is very convenient, and features in many accounting software programs, and can even be created yourself.

3. Use Key Factors factoring financing to bridge the gap of slow payments

Factor Financing is a flexible way to quickly boost your cash flow by allowing you to turn your sales invoices into cash – fast. Forget waiting 30 to 90 days for your clients to pay and recruit the help of Key Factors. With Key Factors factor financing you can get up to 80% of the invoice value in as quick as 4 hours. The remaining 20% less any accrued charges are made available once your client pays us.

4. Become more efficient

With a variety of tech tools available online, it’s never been easier to streamline your business dealings to become more efficient. E-commerce sites, accounting software and smart-phone enabled credit card readers are just a few tools that can save your business both time and money. Use technology to your advantage – for example, conduct international meetings over Skype conference calls instead of paying high travel costs.

5. Find ways to reduce costs

When thinking about how to increase cash flow, if you can’t increase profit, why not find ways to reduce costs? This can go a long way especially for ongoing monthly bills like phone, internet and electricity. Are you certain you’re getting the best deal? Call and negotiate with your providers and you’ll find that often you can receive a significant discount simply by asking, as a reward for consolidating costs or being a loyal customer.

6. Condense all outstanding invoices into one statement

In the case of a customer having a number of multiple invoices open, encourage fast payment by consolidating these documents into one. Having one clear invoice that specifies the total amount owing (as well as a breakdown that details the dates, goods and services purchased) makes it easier for your customer to confirm exactly how much is due, all whilst avoiding having to fill their inbox with numerous overdue statements.

7. Review your prices

When was the last time you reviewed your pricing model? It’s important to fine-tune prices every so often to ensure you’re not selling your goods/services for too little or too much. Cash flow can be boosted by increasing prices, however if you do, make sure the increase is justified by considering what you can add to your products to raise their value in the consumers eyes. Sometimes, the perceived value of products can be raised simply by a price hike.

8. Chase up outstanding payments in a timely manner

In the case of outstanding payments, don’t delay – follow up your clients with polite but firm reminders, remembering to always remain professional whilst doing so.

As apart of our factor financing service, Key Factors will follow up on outstanding accounts on your behalf. We will also send your customers statements summarising the total amount due as a friendly reminder. Our factor financing service not only boosts your business cash flow but can save you time and resources, allowing you to focus on what you do best which is growing your business.
Want to know more about factor financing and how to increase cash flow in your business? 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.

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.