Do you run your own business or company? Have you got money coming in soon from sales or work performed, but you need cash flow now? If we could show you how to maintain a healthy cash flow by using your money now that is coming to you later, would you be interested? If the answer is YES…then read on.

There is a way for you to take firm control over your cash flow position legally and legitimately. Cash flow funding is a highly flexible and increasingly popular way to control the amount of money you have available to pay various business expenses.

All too often, companies experience significant cash-flow shortages as they grow. It's like, we have some good news and we have some bad news. While your sales are increasing, your costs are generally climbing right along with them. Although your outstanding commissions may have increased significantly, it is not yet money in the bank.

As a general rule, you have to wait 6 weeks or more before you get paid. Meanwhile you have wages, BAS, pay roll tax, superannuation contributions and bills to pay. The list goes on.

Cash Flow funding is a generic description of a funding process, based on the value of a business' accounts receivable ledger. Cash Flow funding is also marketed as debtor finance, invoice discounting, factoring, asset finance, invoice finance and working capital finance.

Security requirements
Security requirements vary, but traditionally focus on the value of the debtors ledger, supported by a pledge of specific assets as collateral and a charge or mortgage over the business, along with the personal guarantees of directors. Apart from some specialised lenders, real estate security is not taken. By focusing on the value and collectability of the accounts receivable ledger, most debtor finance credit lines will automatically increase in response to increases in sales, and provide ongoing working capital to fund the growth of the business. Typically the advance rate ranges from 70% of accounts receivable ledger value up to 90%. The remaining 30% to 10%, known as the 'retention' is released following receipt of payment of each invoice by the customer/debtor/buyer.

Debtor finance eligibility
Most business that provide goods or services to other businesses on credit can qualify for debtor finance. Debtor finance is more difficult to place for contractors involved in the building industry, but there are some specialised providers that are comfortable with contract issues. Please not that minimum monthly volumes apply. To find out more; simply fill out the enquiry form or call us today.