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Invoice discounting Australia isn’t a totally new concept; it has been used for a couple of years in the past. Today, thousands of business owners worldwide employ invoice financing as a way of generating cash to run their businesses.
While not too many businesses owners have taken advantage of this business finance model, it is something that you want to look at especially if you are a small business owner. As the economy recovers and gathers momentum, and growth returns, there are several reasons you need to seriously consider invoice discounting Australia.
Accessibility: While it is not necessarily a last option resort, it is now widely considered a mainstream product by advisors and funders. Unlike those conventional funding options, invoice finance funders don’t lay too much emphasis on your historic financial performance or the strength of your balance sheet when you make an application.
Their primary concern is the asset they are securing the loan against - the receivables - and the quality of the management team running the business. Personal guarantees are not always required. Invoice discounting is a highly competitive market with some banks and independent providers offering a wide range of solutions that suit every perceivable situation.
Flexibility: Invoice finance Central Coast is a sales linked product. This means that as your business grows the amount of funding available to you also grows. Funders will typically offer anything from 70 to 90 percent of your outstanding invoices.
This therefore means that as you generate more sales and issue more invoices you have the chance to increase your working capital simultaneously. This is where invoice finance really comes into its own - compare it with the fixed limit of an overdraft or loan; it's less restrictive and encourages growth.
Protection from bad debtors: One of the greatest benefits of invoice discounting that you may not have thought about is being covered from the frustrations of dealing with the threat of bad debt. Every facility will include credit opinions of new and existing customers, and this is often enhanced by the funders own payment experience. By setting an appropriate funding limit for each customer, the funder will limit your exposure to those that may not be able to pay.
Save time and money: There are types of invoice discounting that include a collections service. This means that you actually outsource your credit control function to the provider. The level of service that you get will be custom made to suit your budget and individual requirements.
Time saved chasing debts can be better spent elsewhere and the removal of a fixed overhead will have a positive impact on the bottom line. These benefits are compelling enough for every business owner to seriously consider invoice finance Central Coast.

2017-11-01 21:17:52, views: 202, Comments: 0