A slow Christmas period has put the squeeze on many Aussie small businesses, and with the threat of more significant online companies entering the market, confidence is down according to recent research from cloud accounting specialist MYOB.
The findings revealed that 39 percent of small businesses cited cashflow as a major issue and 37 percent quoted operating costs as another significant challenge.
Fortunately help is at hand with “debtor finance” that can assist in funding cash flow gaps until your customers pay. Also called ‘invoice finance’ or ‘factoring,’ debtor finance is efficient and straightforward to operate.”
With debtor finance, you could receive up to 80 percent of the face value of an invoice on the day you submit your invoice to the lender. Then when a customer pays the invoice, the remaining 20 percent of the invoice less any fees, is paid to the small business client immediately.
Debtor finance is also useful if your business is in turnaround mode. You might be recovering from a bad debt or a loss of production. However, if your business is still fundamentally robust, debtor finance can help you through the blip, without needing to use bricks and mortar property such as the family home as security.
To find out more about how Astute Ability Finance can support your business, call us on 1300 306 694.