Is your business thriving, but you struggle to maintain positive cash flow?

Many businesses operate with good fundamentals but constantly have trouble with creditors. This is commonly caused by a heavy load of customers owning money, such as construction companies who can only charge at milestones. Payment can be particularly slow, especially if a bank is financing the customer as it can be up to 28 days before payments come through after milestone invoices has been issued.

Stop pulling your hair out! One option to relieve cash flow pressure is to get debtor finance.

Debtor financing companies will take your debtor book and finance up to 80% of the money you are owed within the next 30-60 days. They generally charge a fee of around 3% pa.

Debtor financing can help businesses:

  • Provide cash flow for growth
  • Bridge the gap of slow payments
  • Provide working capital for start up companies
  • Meet operating expenses
  • Get on top of ATO obligations

You can get debtor finance for all or some of your outstanding invoices. Most debtor financing companies will simply require a copy of your invoices to provide 80% of the invoice value within 24 hours. Often they will collect the invoice payments from your clients and pay you the remaining 20%, less any accrued charges, when your client pays them.

Sounds pretty easy! And it is. But it is also easy to get into trouble. It is a very fine line between being solvent and insolvent. Make sure the fees don’t cut out all your profit, or result in a loss transaction.

You should always be mindful of creditors and debtors at the best of times, but with debtor financing make sure you have a super-clear picture.

If you decide to go ahead with debtor financing, make sure you shop around as fees vary from provider to provider.

Talk to us to make sure debtor financing is a good idea for your business. We will also help you assess whether you are in fact insolvent trading, and any implications that can arise from that. But above all, we can work with you to take steps on controlling your cash

Any further questions? Please contact SMART Business Solutions on 0359 11 7000 or reception@smartbusinesssolutions.com.au

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Join us for our first Mornington Peninsula retailers breakfast and learn how you can not only survive but thrive in an Amazonian retail environment.

There's been a lot of talk recently about the threat of giants like Amazon on bricks & mortar stores. But it doesn't have to be all bad.

Presented by Craig Bass from VendHQ and Shannon Smit & Nadia Hughes, Directors of SMART Business Solutions, here's a taste of what we'll be covering and why you need to get on board the Amazon Express

What you'll get from attending this session

*Using Amazon for your gain
*How to compete with Amazon by not competing with them
*How to use technology to win
*Breakfast

Who Should attend?

*Retail owners and managers
*Business that engage with and service retailers

When: Wednesday 6th September
Time: Arrive from 7 am for a 7.30am  kick off  - finish by 8.30am
Location: Benito's Restaurant, 1196 Nepean Highway, Mornington

FIRST 25 REGISTERED RECEIVE COMPLIMENTARY TICKETS! otherwise tickets are $25 per head but include a wonderful hot breakfast

A healthy cash flow is vital to keeping your business operating optimally. Should a large percentage of your customer's delay, their payments or – in the worst-case scenario – refuse to pay you, your business could be placed in a very difficult position.

Building wealth is not a product, it is a strategy

An event not to be missed:

The 3 Key topics of discussion will be:

1. Australia : As funny as it sounds, is a hidden tax haven

2. There is only one reason you should pay tax - to avoid paying more tax!

3. Recent increased tax exemptions that benefit small to medium businesses