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CASH FLOW LENDING
Debtor Finance | GSA | Invoice Discounting

What is cash flow lending?

This is a form of finance we are absolutely passionate about educating business owners and finance professionals around.

 

Cash flow lending has a number of different solutions under this banner:

Debtor Finance. GSA and Invoice Discounting the main facilities.

There is a difference. 

 

With standard facilities, especially for start up businesses, it's the reliance on the owners personal property that dictates the lending. In most cases, this is not required for cash flow lending.

This type of finance places reliance on the either the trading itself for a GSA facility or the businesses debtors (accounts receivable).

 

Funds in your debtors awaiting payment is simply cash you potentially could be using to expand or simply trade more efficiently. We're sure you never set out to be a "bank" and provide your customers with a facility, the reality is that's exactly what happens.

 

Start up businesses are difficult to fund without sufficient security. Further difficulties arise where that business grows with speed and required strong cash flow, for example a transport or recruitment company.

These are prime examples where a startup can gain access to a bank facility, linked to their debtors and grows as the sales/debtors grows. The limit calculated on the percentage of the debtors book and fluctuates accordingly.

 

Target companies: Manufacturing, transport, recruitment, printing & wholesale.

Turnover: from start-up to $100m (NZ and/or Aus)

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Our experience in this field is extensive, as finance brokers, previous debtor finance commercial customers

and previous employment within the debtor finance industry.

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Advantages of cash flow & invoice discounting?

When assessing business finance applications we often see businesses have a tough time managing and following up on outstanding cash flow. Cash flow & invoice discounting is a management tool that we believe is undervalued and can really make a difference to certain businesses.

Steady
Cash Flow

Having a third party monitor and follow up on your client invoices means your clients are notified at various stages after the invoice has been sent.

This increases the reliability your business will be paid on time as clients are well aware of your expectations and have recently been reminded. Or, if there is an issue with an upcoming payment, a client can notify you earlier 

Reduces the need for lending

By having a steadier, more reliable cash flow your business won't need to borrow as much to 'get through periods of time when clients have not made their expected payments. 

Improves client & business relationship

When a third party is responsible for following up on upcoming or outstanding payments, it means the clients relationship with you is not damaged by the invoice process.

This means clients will be more likely to still recommend you, improving your industry reputation.

More time to focus on other aspects of business

Appropriately and accurately monitoring your current invoices can be a very time consuming aspect of business. Since this area to externally monitored it means you will have more time to focus your energy on other aspects of the business such as business growth.

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