Top Reasons to Apply For a Business Loan via Finance Brokers
Are you on the lookout for business loans? If yes, you probably have several questions in mind. And one of the first questions to address
Cash flow deficiency is one of the primary reasons enterprises go out of business in Australia. In 2019, a study showed more than 51% of the companies went under due to poor cash flow within that fiscal. This is a significant concern for business owners, striving tooth and nail to maintain business continuity, keep it afloat and ensure consistent profit generation. However, even with the best of efforts, things can go south ways, especially for the SMEs, since most have financial constraints. In such extreme but unavoidable situations, the business owner can seek relief in debt factoring.
When all doors to cash improvement get shut, debt factoring comes into play as your financial saviour. Many business owners confuse it with debtor’s finance, but they are not the same. Debt factoring or factoring receivables is a business financing that allows you to sell your pending or outstanding invoices to a financier at a discounted value and the risk of collection is passed on to the financier. It gives the business owner instant access to cash balancing your books. The financier pays one off discounted money for the receivables ledger relieving the customer from collection responsibilities. After factoring the accounts receivables, the financier gets the debt collected at their end without involving the client.
Debt factoring has proven to be highly effective in mitigating the cash flow crisis for enterprises on a growth spurt. It helps business owners better manage their cash flow by getting paid against the pending invoices of the products or services they have previously sold. Going through a finance broker facilitates quick access to the funds, using which the borrower or business owner can re-start production, pay the suppliers, get early payment discounts, and invest in business expansion.
Now, let’s understand how it boosts the cash flow!
Debt factoring is not a continuous financing solution like a debtor’s finance or business line of credit. It is usually taken as a last resort for business owners when their debts become a cash flow liability. Are you in a similar fix? Reach out to a reliable and reputable finance broker like Broc Finance, with the experience and an adequate network of lenders for fast access to cash. Leverage your receivables to boost the cash flow of your business ASAP.
Saroj is the Head of Lending at Broc Finance. He comes with 13+ years of experience in small business lending and has a knack of structuring complex deals and get the best outcome for his customers.
Are you on the lookout for business loans? If yes, you probably have several questions in mind. And one of the first questions to address
As the name implies, forklift finance is the kind of business finance that one uses to buy heavy industrial equipment like a forklift for daily
Late invoices are a common pet peeve for small business owners. Many small and medium enterprises provide goods and services on credit. However, due to
Contact us today and discover how our expertise can help your small business thrive.
CALL US
1300 253 041
EMAIL US
enquiries@brocfinance.com.au
Broc Financial Services Pvt Ltd.
ACN 648 088 304
Credit Representative number 540795 is Authorised under Australian Credit Licence Number 389328