Factoring, or invoice finance, is a growing business in Australia. The Debtor and Invoice Finance Association (DIFA) published a report on the September 2015 quarter that showed a 1.8% increase in debtor financing over the same quarter in 2014. But what would it look like for your business?
Here are three ways that more access to your cash flow can help you to get ahead of the competition.
By taking advantage of your unpaid invoices rather than stressing about them, you will improve the cash flow of your company and therefore find yourself in a better position to reward your employees.
Higher base salaries can attract more staff members to stay with the company, but making them feel valued is just as important
International recruitment firm Robert Half lists competitive remuneration as one of seven key strategies to retain and motivate employees. That is not limited to a base salary package however, or paying employees of your SME on time. While higher base salaries can attract more staff members to stay with the company, making them feel valued and appreciated based on the little things is just as important.
Ranging from professional growth opportunities to office-wide health initiatives, the ways that you can make your employees happier, and therefore motivated to work harder for you, are endless. Having working capital that is actually available to you, rather than tied up in unpaid invoices, will allow you to make the most out of the cost-effective ways you can make your employees love their jobs even more.
According to Dun and Bradstreet, the average invoice payment times for the September 2015 quarter dropped hugely to 45 days, down significantly on the 2014 peak of 56 days. Even with the plummeting numbers, 45 days is still a long time to wait for your hard-earned income to be available.
By freeing up your cash flow with debtor finance, you can have access to that income in as little as 48 hours. With all of that capital available to your company, the opportunity to invest and grow becomes a real possibility. Simple investments, like new and modern technology, can be a big boost to your business, as can investing the available cash for a profit, resulting in long-term growth.
Modernising your office space with updated computers and software can improve productivity simply by allowing your employees to work faster, alongside the more efficient computers. Upgrading a fleet of vehicles can provide a massive boost for your company and reputation, as can using temporary labour finance to hire employees as needed around busy periods of the year. O'Neil Transport, a trucking company based in Victoria, for example, has been upgrading its engines as required and they now get better fuel efficiency, saving them money and allowing them to expand.
Having the ability to improve your business in any of these ways, or the other hundreds that you have in mind for your business, is a real possibility with more access to your money.
Getting ahead on the web
With an ever-increasing environment online providing opportunities to promote your business, getting ahead of the competition is a major key to successful campaigns.
Marketing campaigns are changing quarter by quarter, and technology is making that even more flexible. Increasing numbers of people in the United States that use only one digital platform for browsing the web are turning to their mobile phones instead of computers, according to data from ComScore. That trend may well find itself coming to Australia in the near future, and preparing a marketing campaign for mobile devices, and therefore investing in that, could place you in a market-leading position while your competitors catch up.
While marketing effectively costs money, having working capital by way of invoice financing will provide the necessary funds to achieve your advertising goals.
Earlypay has been in operation in Australia since 1985, and is the country's longest-established invoice financing company. Talk to Earlypay today to learn more about the benefits of a simplified cash flow.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].