The new year brings many exciting opportunities for your business growth. It is also a great time to reassess your strategy and consider if you have all the resources to support its growth.
Profitability and cash flow are very different financial measures. Your business may have great margins, healthy order books and a large debtor balance, but on the other hand cash flow within the business might be a different story.
Invoice finance (also referred to as factoring) can help turn cash flow challenges into competitive strengths, driving your business forward. Here are three signs that you may need invoice finance this year:
Saying no to new contracts and customers
Are you turning down new opportunities because you don’t have the money to purchase or manufacture new stock? Invoice finance allows you to take advantage of new opportunities by providing you the cash now to fund your growth. Invoice finance is funded against outstanding invoices so as your receivables grow, your funds will too!
Falling behind on creditor payments
As a growing business you may not have the negotiating power to lock in favourable payment terms and this may result in delayed payments to your creditors. Invoice finance can help ease the pressure between invoicing and the receipt of funds by providing you the ability to pay your suppliers in a timely manner. Paying your creditors early could even help you negotiate favourable payment terms and discounts on future bills.
Hesitant Decision Making
Invoice finance provides access to cash flow which allows you to have confidence in your decision making. That could be anything from submitting an offer to tender for a new contract or hiring new employees to support your growth. Having access to that cash flow allows you to make the necessary strategic decisions on your terms.
If you are experiencing any of the above this new year, reach out to the Timelio team and we will help you get started; Give us a call on 1300 38 63 63 to speak with one of our experts or email if you have any questions on how invoice finance can help YOUR business.