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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 a business sells its accounts receivable – or invoices – to a third-party (a ‘factor’) it’s called ‘factoring’. The transaction results in immediate access to cash for the business from the factor, who then collects the payments owed to the business from their customers.

Factoring is an option that increases cash flow for businesses of all sizes and from all kinds of industries. Factoring is used to purchase inventory, new equipment, pay employees, get on top of ATO obligations, or expand organisational operations. It has many benefits for businesses that are looking to grow and make faster decisions when it comes to their expansion.

Advantages of factoring finance

Apart from providing quick access to cash that a business would otherwise have wait for up to 90 days for, factoring finance can make a significant difference to operational efficiency and customer relationships in the long term. Moreover, factors provide free management of accounts collections from a company’s customers – a task that can be stressful and time-consuming. As a result, more time can be spent on making more efficient use of resources and growing business.

Factoring Finance PerthFactoring can also be a quick solution to raise vital working capital for growing companies going through expansion.

Why you should trust Key Factors for factoring finance

At Key Factors, we use over 30 years of experience in the field to make sure your business is in good hands. We are an independently owned Australian company, with a well-built reputation when it comes to providing our customers with flexible factoring solutions.

Most importantly, we’re reliable. Our aim is to make sure that slow payments don’t limit your business’s potential. For that reason, you can count on us to give you up to 80% of the value of your invoices in as quick as 24 hours.

Key Factors has offices in Sydney, Melbourne and Perth. Whether you’re looking into factoring finance to improve cash flow or take full advantage of your business’ growth potential, our friendly staff are here to answer all your questions. Call us on 1300 884 100 and speak to cash flow expert today.

Debt Factoring allows businesses access funds owed to them before it is paid by the debtor. It’s a way for businesses to access most of the money owed to them in their outstanding invoices and receive the rest when the customer pays.

How does debt factoring work?

Businesses that are in need of quick access to cash can sell their accounts receivables at a discounted rate for a fast injection of cash. Debt factoring allows businesses to continue their day-to-day operations without worrying about limited cashflow.

Invoices are forwarded to the factor like Key Factors who then provides up to 80 per cent on the face value of the invoice within 4 hours to the business to access as necessary. When the invoice is paid in full to the factor, the business receives the remaining 20 per cent less any accrued fees.

Businesses that are eligible for debt factoring must have B2B sales on credit terms, and invoices for the sale of goods or services that have been fully delivered.

Advantages

There are quite a few advantages to using debt factoring for businesses of all sizes.

  • Additional cash flow for growing companies
  • Bridge the gap of slow payments
  • Working capital for startup companies
  • Meet operating expenses
  • Get on top of ATO obligations

It’s a flexible alternative to traditional business loans as it is adjusted based on the business’ sales. Debt factoring can hugely benefit cash flow since businesses can get instant access to a large proportion of the money owed to them instead of waiting for payments to arrive. As a result of this early payment, discounts can also be removed or reduced.

Businesses that use debt factoring has better negotiating powers with suppliers by using the money they receive to take advantage of early payment discounts and bulk-buying opportunities.

One of the main advantages of debt factoring is to provide working capital for growing companies. Access to instant cash allows a growing company to buy more equipment, meet ongoing expenses and hire more staff to service the increase in workload.

Our service allows you to immediately convert sales invoices into cash to help your business operate and grow.
 
Debt Factoring Perth
 
Find out more about our debtor finance here.

Key Factors flexible debt factoring

  • No lock-in or long-term contracts
  • No minimum factoring volume
  • No ongoing monthly charges or annual charges
  • No quarterly audits
  • No property security
  • Fast 48 hours approval

With offices in Perth, Sydney, and Melbourne, our local state managers can provide a tailored cash flow solution to suit your business. Find out how Key Factors’ debt factoring, debtor finance and factoring finance and can benefit your business by contacting us today.

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.

 

Debtor FactoringA popular form of small business financing is debtor factoring – a process that involves using a company’s accounts receivable as collateral in order to fund the business. Through this, cash flow is released from outstanding invoices in as quick as 4 hours from a factoring company like Key Factors. SMEs often turn to debtor factoring as limited cash flow can hold their business back and restrict them from reaching their full potential.

Here’s How Debtor Factoring Can Keep Your Business Afloat:

1. Additional cash flow to fund growth

Debtor factoring is an excellent source of small business financing, providing immediate access to cash flow allowing businesses to fund growth and company expenses.

2. Bridge the gap of slow payments

With some customers taking up to 90 days to make payments, it can cause a serious strain on a business’ cash flow. By using debtor factoring with a factoring company like Key Factors, businesses can bridge the gap of slow payments and get up to 80% of the invoice value in as quick as 4 hours.

3. Meet operating expenses

To keep a business running there are ongoing operating expenses that must be paid including payroll, taxes, rent, and employees benefits. It’s essential that your business has access to sufficient cash flow to meet these expenses.

4. Get on top of ATO obligations

Small business finance through debt factoring can help businesses get on top of ATO obligations and Business Activity Statements.

5. Increase your buying power

With access to funds, your business can not only stay afloat but get ahead and increase its buying power. This can give your businesses a confidence boost and more clarity when planning long-term strategies.

6. Streamline the administration process

Working with a debtor factoring company can also minimise the stress of managing customers outstanding debts. As apart of our service Key Factors will help follow up payments with your customers on your behalf, so you can focus on what you do best which is growing your business.

Securing business finance from Banks can take months to get approved and comes with repayments, long-term contracts and complex conditions. Debtor factoring with Key Factors can be approved in as quick as 24 hours, and funding can occur in 4 hours with no locked-in or long-term contracts.

Small Business Financing made easy

With offices in Sydney, Melbourne, and Perth, our local State managers can provide tailored small business financing to suit most Australian businesses.

Contact us at Key Factors and a local state manager will be more than happy to discuss your needs and provide you with a quote to suit your requirements.

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.

Business Finance With FactoringRunning 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:

  1. Invoice your clients and send us a copy.
  2. We transfer up to 80% of the invoice value to your nominated account in as quick as 4 hours.
  3. 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.

Company Name: Flexi Management Solutions Ltd

Industry: Workforce Management

Annual Turnover: $10,000,000.00

Group Facility Limit: $1,000,000.00

Flexi Management Solutions Ltd founded in 1972 is an Australian company listed on the Australian Stock Exchange. Flexi Management Solutions provide workforce management solutions to leading public and private sector organisations. WhenFlexi Management Solutions approached Key Factors they had multiple subsidiaries that were operating at a loss, they had just ceased their factoring facility with another provider, and they were on the verge of being shut down by the ATO due to having tax debts in arrears in excess of $2,000,000.00.  Key Factors’ flexible factoring was just what they needed to get their business back on track.

They needed cash flow assistance in order to sell off some of their non-performing subsidiaries and clear their ATO debts, at the same time they were cautious due to the poor experience they’ve had with their previous provider. They wanted a flexible financial partner who was not going to tie them into a long-term contract, allow them to use the service on a selective basis, and only charge them for what they use. Key Factors was able to offer Flexi Management Solutions just that and at the same time improved their cash flow by releasing the cash tied up in their unpaid invoices.

Key Factors Flexible Factoring

Flexi Management Solutions simply submit invoices to Key Factors as they need cash, and up to 80% on the face value of their invoices were credited into their account in as quick as 24 hours.

Within 6 months of using Key Factors flexible factoring finance, Flexi Management Solutions cleared all their ATO debts, restructured their business and is back to being a front runner in the workforce management sector.

Key Factors flexible factoring has no long-term contracts, no property security, no minimum usage, no management fees, no annual fees, no monthly admin fees and no quarterly audits.

The scenario above is taken from a real client situation. The client’s business name and details are withheld for privacy reasons.

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.

Invoice Factoring Perth55.8 days is the average payment terms for Australian Businesses, according to the most recent survey by Dun & Bradstreet June 2013. So what can businesses do to ensure they get invoices paid quicker and maintain a healthy cash flow?

Secure cash flow financing

Key Factors flexible cash flow financing allows businesses to release the cash tied up in their unpaid invoices in as quick as 24 hours, without the need of real estate security or long-term contracts. Instead of waiting 30, 60 or even 90 days to get paid businesses can get up to 80% on the value of their invoices credited to their account, when they need it.

Invoice promptly and correctly

The sooner the invoice is issued and is received by your customers the sooner you will get paid. Ensuring all information on the invoice is correct can also get your invoices processed more promptly with minimal delays. Electronic invoicing is quick and easy to track and is a viable option for businesses wanting to reduce processing & delivery time of invoices.

Know your customers

When a company has clients on accounts they are essentially providing credit, hence it is important to know the credit worthiness of their customers. At Key Factors we conduct essential background checks & analyst on our clients debtors to limit their risk.

Follow up on payments

Late payments causes strain on a business’s cash flow. So when your customers pay outside your terms, it is always best to follow up. Simple but effective follow up methods includes, a telephone call, and posting out statements to clients outlining amounts owing and the date it was due. Key Factors conducts follow up on payments on behalf of our clients, allowing them to focus on what they do best and grow their business.

Don’t let slow payments hold your business back

Late payments have a major impact on the business’s ability to meet operational expenses and hinder investments for growth. Hiring new staff to meet demands is also not an option when cash flow is limited.

Find out more about our cash flow financing today by calling 1300 884 100 today.

Enjoy A Stress Free EOFY

At Key Factors, we understand the EOFY can be a stressful and busy time for any business. It is all about making sure you’re on top of your financial responsibilities while meeting legal requirements. If cash flow is tight, or your working capital needs a boost, Key Factors invoice factoring facility can help by advancing cash against your receivables.

Factoring Company PerthSmall businesses tend to take on a lot for themselves, from administration, to marketing and bookkeeping, so don’t let the EOFY creep up on you, be aware of time-frames and set reminders.

In order to run a successful business, not only should you be ahead of the EOFY, but think of it as more than just your tax deadline. Start thinking of it as an opportunity to breath a bit of life back into your business and a time to do some strategic thinking. With Key Factors flexible factoring facility the EOFY can be a positive time.

Left it late this year?

We don’t want you to miss anything in the rush so we’ve put together a handy checklist for you to work from.

Simple EOFY checklist for small businesses:

  • Set-up a meeting with your accountant
  • Provide your Business Activity Statement
  • Review your SuperStream requirements
  • Payroll: review any outstanding leave and long-service entitlements of staff
  • Check all employment contracts
  • Annual Income Tax, PAYG Withholding, Fringe Benefit Tax, and Goods and Services Tax reports or returns all need to be lodged
  • Calculate your depreciation expenses by collating your records of asset purchases and capital expenditure
  • Prepare a profit and loss sheet for the year – including revenues and expenses
  • Review outstanding debtors and creditors
  • Check all your client, customer or consumer contracts are all still valid
  • Get in touch with a factoring company if you need to improve your cash flow or are struggling to pay off fees due to slow-paying clients.

Be the best you can be:

  • Take a stock take of your inventor
  • Analyse your performance against the targets you set last year
  • Re-set goals for the following tax year
  • Review your business plan
  • Research changes to your industry, do you also need to develop to align?
  • Decide whether you’re in need of a new marketing strategy
  • Do a cash flow forecast for the following year and assess whether you could benefit from accessing your cash from unpaid invoices by using a factoring facility.

Avoid the rush

It’s time to get yourself prepared and take action in advance. By being ahead of the EOFY, there is a lot to gain, such as taking advantage of tax breaks or upgrading any essential equipment, as well as numerous others.

Why you should submit your taxes early and be prepared:

  • Get your hands on your refunds sooner: if you’re owed tax, it will be paid into your account shortly after submitting your application, therefore, the sooner you apply, the sooner you’ll receive anything owed to you
  • Expecting a bill oppose to a refund? It’s still best to deal with it and work out your finances accordingly, you can also assess how much you owe in advance and then have a saving goal in mind, or use Key Factors factoring serviceto pay it off with your accounts receivables.
  • Avoid any fines – late fees are charged, and you never know what could cause a last minute delay, so make sure yours are done well in advance.

Although Key Factors encourages you to get ahead of the EOFY, remember that factoring companies can help you stay on top of your finances all year round. We understand that expanding your business takes up a lot of time, that’s why, at Key Factors we want to help you focus on growing your company while we take care of your finances. Simply get in touch to see how we can help you.