Cash flow is the most important part of any business. Without it you simply cannot operate. One of the biggest hurdles with debtor management is ensuring your debtors pay you in a timely manner.
Cash Flow Finance, or Invoice Finance as it is also known, can speed up the cash flow of a business if it sells to other businesses.
How it works
Invoice finance is where a business’s accounts receivable ledger, (or part thereof) can be used as collateral against obtaining finance. The debtors ledger is sent to the finance company and they can remit funds to the business. The amount of the ledger which is financed varies depending on the debtors involved. When debtors begin paying the invoices, this repays the finance company.
Benefits of the solution
Kearley Lewis works with a handful of reputable invoice finance providers. The benefits of using an invoice finance company are:
· You speed up your cash flow and get paid more quickly by your debtors
· You can reduce your chances of having bad debts
· You can obtain finance without providing real estate as security
· Your costs for finance can be factored into your pricing
· You can obtain debtor insurance as part of your invoice finance package
· You get access to your funds immediately, while your competition wait until their debtors pay
If your debtors are putting pressure on your cash flow and you’d like to talk about your potential invoice finance options, call Julie Lamers on 0406 744842.