Read this article on debtor finance or invoice financing and how it can help your business:
https://www.intellichoice.com.au/find-right-invoice-finance
Wednesday, July 21, 2010
Monday, July 19, 2010
Small business finance scrutinised
The Senate Economics Reference Committee has found that small business finance has tightened over the past couple of years and become more expensive. However, it concluded that a return to more prudent credit conditions was appropriate. It was more concerned with what it saw as restriction on competition, particularly exit fees on business loans and the high cost of moving accounts.
It recommended that banks abolish exit fees on variable rate mortgage loans. It also recommended that the Australian Bankers Association work with small businesses to develop a code of practice for lending to small businesses. It includes a proposal to extend to small business the protection currently available to consumers.
Such a change would mean small business would have ASIC acting as a watchdog over exit fees. It would also give small businesses better access to mechanisms for negotiating with mortgage lenders when they are in financial difficulty and it would impose responsible lending obligations on small business lenders.
It recommended that banks abolish exit fees on variable rate mortgage loans. It also recommended that the Australian Bankers Association work with small businesses to develop a code of practice for lending to small businesses. It includes a proposal to extend to small business the protection currently available to consumers.
Such a change would mean small business would have ASIC acting as a watchdog over exit fees. It would also give small businesses better access to mechanisms for negotiating with mortgage lenders when they are in financial difficulty and it would impose responsible lending obligations on small business lenders.
Friday, July 16, 2010
Access to flexible finance critical for new financial year revival for SMEs
Access to credit, slow trade payments and business cash flow are still some of the chief concerns for SMEs. According to Dun & Bradstreet’s most recent Business Expectations survey (June 2010), 21% of Australian businesses reported they had less access to credit then compared to the previous quarter. Lending criteria from the traditional big banks remains tight, particularly for the small business sector, which many believe is yet to experience the recovery witnessed by their medium and large enterprise sector.
The most recent trade payments analysis from Dun & Bradstreet for March 2010 also noted that the average debt payments were increasing to 54.1 days, an increase on the previous quarter. Approximately 46% of businesses surveyed indicated they were being negatively impacted by lagging business to business payment terms, a 10% rise since April 2010.
Late payments can cause a range of issues for the business, including preventing the company from purchasing new stock, maintaining their tax position and threatening supplier relationships.
As we commence a new financial year, having access to a flexible source of funding will be critical to supporting a revival in the SME sector, helping SMEs manage cash flows, fluctuating demand and expenses and capitalize on growth opportunities as they arise.
Debtor finance is one of the most accesible forms of funding available to SMEs in the current climate. To discuss how debtor finance or inventory finance can benefit your business, contact one of the mortgage brokers at Intellichoice on 1300 55 10 45 or visit www.intellichoice.com.au for more details.
The most recent trade payments analysis from Dun & Bradstreet for March 2010 also noted that the average debt payments were increasing to 54.1 days, an increase on the previous quarter. Approximately 46% of businesses surveyed indicated they were being negatively impacted by lagging business to business payment terms, a 10% rise since April 2010.
Late payments can cause a range of issues for the business, including preventing the company from purchasing new stock, maintaining their tax position and threatening supplier relationships.
As we commence a new financial year, having access to a flexible source of funding will be critical to supporting a revival in the SME sector, helping SMEs manage cash flows, fluctuating demand and expenses and capitalize on growth opportunities as they arise.
Debtor finance is one of the most accesible forms of funding available to SMEs in the current climate. To discuss how debtor finance or inventory finance can benefit your business, contact one of the mortgage brokers at Intellichoice on 1300 55 10 45 or visit www.intellichoice.com.au for more details.
Tuesday, July 13, 2010
Invoice financing - relieving the cash flow pain
With a number of businesses struggling with cash flow at present, it may be a good idea to have the business cash flow expert in our office give this week’s report.
Joe Podobnik has thirty years experience in commercial lending – so he has seen it all before – the good times and the bad. With the pressure coming onto some sectors of the market, we can suffer a real pain in the cash flow if not prepared.
What can we do?
Well, if your current lender has not been your best friend of late, it may be time to consider other options to make the cash flow again. Alternative lenders who provide debtor finance, factoring, inventory financing and special leasing/renting options can be outside of what major lenders are happy to offer.
Why is this important?
Well, having the ability to free up – in some cases, up to 80% of invoices – meaning some of the pain of balancing cash flow has taken care of. How can this done? If an invoice can be raised, there are lenders who under certain conditions who will advance monies within 24-48 hours.
Similarly, short-term inventory finance can allow your business to take up opportunities when they arise by injecting much needed cash into the business. This can be the case where goods/materials are to be purchased and then on sold quickly in 1-3 months.
Equipment rental, instead of leasing can in some cases be a valid option if the equipment will eventually fund itself. This can be useful to buy equipment and machinery with a rental repayment held off balance sheet-useful when short-term contracts are on offer, and when lenders are not willing to advance leasing facilities on big-ticket items.
Can these be used for a growing a business
Obvious benefits exist for using the above types of lending facilities when business is growing. Many of these style of funders don’t have the rigorous criteria, like performance ratios as do the major banks. And although they are pricing for risk (more on this next month) it can in some cases be the only way to keep business moving.
If any of these are options that you may not have explored before, then the time may have come to look a little harder. Banks feel particularly nervous in times such as these and being prepared for the future is always a good idea.
Joe can be contacted on 1300 55 10 45 or email info@intellichoice.com.au. Visit www.intellichoice.com.au for more information about alternative business cash flow solutions.
Joe Podobnik has thirty years experience in commercial lending – so he has seen it all before – the good times and the bad. With the pressure coming onto some sectors of the market, we can suffer a real pain in the cash flow if not prepared.
What can we do?
Well, if your current lender has not been your best friend of late, it may be time to consider other options to make the cash flow again. Alternative lenders who provide debtor finance, factoring, inventory financing and special leasing/renting options can be outside of what major lenders are happy to offer.
Why is this important?
Well, having the ability to free up – in some cases, up to 80% of invoices – meaning some of the pain of balancing cash flow has taken care of. How can this done? If an invoice can be raised, there are lenders who under certain conditions who will advance monies within 24-48 hours.
Similarly, short-term inventory finance can allow your business to take up opportunities when they arise by injecting much needed cash into the business. This can be the case where goods/materials are to be purchased and then on sold quickly in 1-3 months.
Equipment rental, instead of leasing can in some cases be a valid option if the equipment will eventually fund itself. This can be useful to buy equipment and machinery with a rental repayment held off balance sheet-useful when short-term contracts are on offer, and when lenders are not willing to advance leasing facilities on big-ticket items.
Can these be used for a growing a business
Obvious benefits exist for using the above types of lending facilities when business is growing. Many of these style of funders don’t have the rigorous criteria, like performance ratios as do the major banks. And although they are pricing for risk (more on this next month) it can in some cases be the only way to keep business moving.
If any of these are options that you may not have explored before, then the time may have come to look a little harder. Banks feel particularly nervous in times such as these and being prepared for the future is always a good idea.
Joe can be contacted on 1300 55 10 45 or email info@intellichoice.com.au. Visit www.intellichoice.com.au for more information about alternative business cash flow solutions.
Thursday, July 8, 2010
Banks to hit up small businesses
Small and mid-sized businesses will continue to bear the brunt of higher funding costs.
According to a new survey by JP Morgan and Fujitsu Australia, as the cost of funding rises for banks, the pressure on businesses will increase. About 90% of lending to small and medium sized businesses comes from the major banks, with NAB controling the greatest share at 26%, followed by Westpac (25%), CBA (24%) and ANZ (15%).
Small businesses are paying higher interest rates than the residential home loan sector. Lending to businesses has tightened over the last two years and the risk of losses have climbed.
If you are having difficulty getting business finance from your bank because of their tightening lending criteria, speak to one of the mortgage brokers at Intellichoice about alternative business finance solutions. Intellichoice has access to over 20 lenders who specialise in alternative business cash flow, such as invoice finance, trade finance, inventory finance and equipment rental finance.
Call 1300 55 10 45 or email info@intellichoice.com.au for more details. Visit www.intellichoice.com.au.
According to a new survey by JP Morgan and Fujitsu Australia, as the cost of funding rises for banks, the pressure on businesses will increase. About 90% of lending to small and medium sized businesses comes from the major banks, with NAB controling the greatest share at 26%, followed by Westpac (25%), CBA (24%) and ANZ (15%).
Small businesses are paying higher interest rates than the residential home loan sector. Lending to businesses has tightened over the last two years and the risk of losses have climbed.
If you are having difficulty getting business finance from your bank because of their tightening lending criteria, speak to one of the mortgage brokers at Intellichoice about alternative business finance solutions. Intellichoice has access to over 20 lenders who specialise in alternative business cash flow, such as invoice finance, trade finance, inventory finance and equipment rental finance.
Call 1300 55 10 45 or email info@intellichoice.com.au for more details. Visit www.intellichoice.com.au.
Wednesday, July 7, 2010
Dispelling the myths of invoice financing
There are many myths and misconceptions about invoice finance, which this article has tried to address:
https://www.intellichoice.com.au/find-right-invoice-finance
Invoice finance is a legitimate means of managing business cash flow.
To find out more about invoice finance and how it can help you grow your business, speak to one of the mortgage brokers at Intellichoice on 1300 55 10 45.
https://www.intellichoice.com.au/find-right-invoice-finance
Invoice finance is a legitimate means of managing business cash flow.
To find out more about invoice finance and how it can help you grow your business, speak to one of the mortgage brokers at Intellichoice on 1300 55 10 45.
Thursday, July 1, 2010
A business cash flow finance solution that allows you to concentrate on running your business
Do you want to know how you can accelerate business growth?
Unsure of options to grow or cash flow your business?
Invoice financing is ideally suited if you:
- Want to break free from the usual securities sought by financiers
- Want to leave the businesses' fixed assets unencumbered for sale or refinance without hindrance
- Want peace of mind that your funding line is secured by the business itself and not your personal assets
- Want to seek a working capital facility to assist with business growth or to take advantage of an opportunity
How do you grow your business if your cash is tied up in unpaid invoices?
Have up to 90% of the value of your invoices available for use in the business within 24 hours
Not willing to mortgage your property for a line of credit?
Invoice financing does not require property security!
No time to chase your customers for outstanding moneys owned?
We can assist with efficiently managing the collection process, or you can choose to maintain complete control
With over 20 lenders on the market offering invoice financing, how do you know that you're getting the right product for your business? If you're not sure which lender to use, speak to Intellichoice first. We have access to all major lenders in Australia and will tailor a finance solution to suit your business needs.
Speak to Intellichoice today to find out how invoice financing can grow or cash flow your business. Call 1300 55 10 45 or email info@intellichoice.com.au. Visit www.intellichoice.com.au for more details.
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