Demand for invoice financing increasing

Recent comments from the Australian Banking Association indicate that after nearly 2 years of difficulty, there may be some circumstances where banks are no longer able to support struggling businesses. In addition, it has been suggested that the ATO may take a harder line with businesses that lodge late payments. These conditions have resulted in a rise in demand for invoice financing over the past 12 months, with demand precidcted to continue.

What is pushing the increased demand for invoice finance?
A combination of factors are pushing the increased demand for invoice finance, including tighter bank credit conditions - particularly for SMEs. This has made invoice finance or debtor finance one of the most accessible forms of business finance available, due to the fact that these types of facilities do not typically require real estate security.

This also means invoice finance is ideal for growing businesses in the current climate, as the funding limits grow in line with sales and are not capped to a percentage of the property value, as is the case with a typical business loan.

In addition, uncertain trading conditions and slow debtor payments are placing added pressure on business cash flow. On average, it takes about 54 days for invoices to be settled, almost double standard trading terms and many operations cannot absorb this temporary cash-gap, particularly those with COD terms from suppliers.

Looking at the bigger picture, certainly the GFC has highlighted the importance of strong cash flow for business owners. As a result, there is now a greater awareness of invoice finance products by business owners. Add to this the fact that invoice finance has all but lost its tag as 'emergency lending' and is now considered a viable mainstream funding option for SMEs in Australia.

How can Intellichoice help
With access to over 20 lenders, the business finance specialists at Intellichoice will find you a flexible product to meet your business needs.

• Improve on cash flow and help your business run smoothly
• Access funds quickly to capitalise on business opportunities as they arise
• Fund business growth with increased working capital
• Increase your purchasing power and improve supplier relationships
• No real estate security required
• Past credit issues are not a problem - we may still be able to find a solution for you
• No red tape application process - you can access funds within 24 hours
• Have up to 90% of the value of your invoices available for use in the business within 24 hours
• Flexible facilities that grow with your business 
• Tax deductible fees
• We can assist you with efficiently managing the collection process or you can choose to maintain complete control
• Rapid source of funds
• Simple setup process
• Funding available for almost every type of business

As a premier provider of debtor based finance solutions, we first understand your business and then tailor a finance solution to suit your business needs. Contact one of the business finance specialists at Intellichoice today on 1300 55 10 45 or email info@intellichoice.com.au to find out how we can help you grow your business. We have access to other business cash flow solution, including trade finance, inventory finance and equipment rental finance.

Improve business cash flow with invoice financing

Read this article on how invoice financing can help you grow and expand your business without having to wait 30, 60 or even 90 days for your invoices to be paid:

https://www.intellichoice.com.au/find-right-invoice-finance

To find out more about invoice financing and other business finance solutions avaible to help your business grow, speak to one of the qualified consultants at Intellichoice today on 1300 55 10 45 or visit www.intellichoice.com.au for more details.

Why your business should consider using invoice financing in this dire business climate

If your business is having problems getting funding from your bank due to the tightening in lending criteria, then you should consider invoice financing - an alternative business finance solution that provides your business with funds within 24 hours and helps you grow and expand your business without the need for real estate security.

With the current financial situation amid the pandemic, thousands of business across Australia have either paused operations or totally shutdown. With this, the government has provided information on how strugling businesses can cope with the impact of pandemic on their businesses. 

But closing down a business should be the last resort that businesses consider. If you haven't tried invoice finance as a solution to increase cash flow in your business, it sure is a worth the try. 

Read this article to find out more the benefits of invoice financing:

https://www.intellichoice.com.au/find-right-invoice-finance

To find out more about invoice financing and whether it is suitable for your business, speak to one of the business finance specialists at Intellichoice today on 1300 55 10 45 or email info@intellichoice.com.au.

Inventory finance used to grow your business

• Inventory finance is used to help small and medium sized companies to grow
• Inventory finance is ideal for businesses that have a clear credit history and good management
• Inventory finance is suitable for companies that require funds immediately in the first phase of the selling process
• There is no real estate security required - it is based on your business. It is based on your figures and the state of your business
• Inventory finance lets you expand your customer base and take on bigger orders
• As you are able to increase your purchasing power, your relationship with your supplier strengthens and they may be able to give you a better price as you are paying for the stock upfront and you save on shipping/freight costs

To find out more about inventory finance and other business cash flow finance solutions available at Intellichoice, speak to one of the business finance specialists today on 1300 55 10 45.

Intellichoice provides equipment rental finance solution to give businesses an edge

An excavation client saw an opportunity to grow his business, but to capitalise on this great prospect, he needed a loader. But without a guarantee from this job, the client would be putting himself and his business under enormous strain if he purchased the equipment outright.

An equipment rental solution was quickly put in place for him, which helped reduce his risks and allowed him to save his hard-earned capital.

This unique business finance solution let him rent equipment at an affordable weekly rate, but still gave him the option to purchase with a generous rebate.  Furthermore, the equipment rental solution is fully tax deductible and if after 12 months the equipment didn’t suit him, he could return it with no penalties.

Some of the key benefits of this unique equipment rental hire finance solution include:

• Low weekly rental repayments
• Lets you free up your valuable working capital instead of spending it on depreciating assets
• Peace of mind knowing you’re not stuck with equipment that isn’t right for your needs – you can return the equipment at the end of the 12 month agreement if it is no longer required
• Rental payments are 100% tax deductible
• Renting is off ‘balance sheet’, meaning it doesn’t affect your capacity to borrow for future expansion
• You’re not locked into a long term lease
• If you purchase the equipment at any time during the first 12 months, you receive 75% off the net rent as a rebate
• If you continue to rent, we’ll just continue to reduce your purchase price

To find out more about this unique equipment rental solution and how it can work for your business, speak to one of the business finance advisors at Intellichoice today on 1300 55 10 45. We also have access to alternative business finance solutions to help your business achieve your full potential. This includes invoice finance, debtor finance, trade finance, import and export finance and inventory finance.

Tightening lending conditions slowing business growth

According to a new report, Australian businesses are expecting slower growth in inventories and capital investment for the September 2010 quarter.

According to Dun & Bradstreet’s Business Expectation Survey, access to business finance remains a critical issue for many companies. Approximately 20% of these businesses stated they had less access to credit in the last quarter. These results confirm figures from the RBA, which also revealed a decline in business activity by 7% over the year to April 2010 and a decline in business borrowing by 0.4%.

According to Dun & Bradstreet, an aversion to debt among some businesses and difficulties securing business finance from the banks may inhibit future growth.

The survey also showed that employment, profit, sales and selling price expectations has fallen since the June quarter, but still remain positive and well above GFC levels.

Australian businesses in need of business finance to grow their operations, or to pay salaries or inventory should consider alternative business cashflow solutions. If you are having difficulty securing funding from your bank due to the tightening lending criteria, speak to the commercial finance team at Intellichoice today on 1300 55 10 45. Intellichoice has access to other business cash flow solutions to suit your needs, including invoice finance, trade finance, inventory finance and equipment rental.

Average time to sell a business stretches out as buyers find it hard to get finance

A survey of LINK business brokers has shown the average time to sell a business has stretched out from 15 to 21 weeks as buyers struggle to get the finance needed to seal the deal. The survey also found the delays in obtaining business finance were pushing down sale prices, with the average price dropping from $400,000 to $225,000.

LINK managing director David Fitzgerald says this significantly makes it hard for business owners. Furthermore, the average buyer is “taking almost nine months to find a business that is suitable or that they can afford.”

The survey showed a 39% increase in the number of interested business buyers. However, about 38% of buyers surveyed have had to re-evaluate the types of businesses they can afford due to tightening lending policies, while 44% of buyers said the biggest problem is getting finance from the banks.

Overall, approximately 81% of business owners and buyers have had trouble obtaining finance from the banks.

If you require finance to start up a new business, buy a business or need business cash flow to expand your operations, but you are having problems with your bank because of the stricter lending criteria, speak to one of the business finance advisers at Intellichoice today on 1300 55 10 45. We have helped numerous clients to achieve their dreams and goals through alternative business finance solutions, including invoice finance, business loans, trade or import finance, inventory finance and equipment rental hire.