September 16th, 2013

New Year’s resolutions. Some of us are big believers in setting new goals and sticking to them. Some of us may already have let a couple slip! Of course others simply don’t buy into the whole New Year’s resolution idea. But however you might feel about resolving to make changes in your life, let me assure you that as far as your business is concerned, there’s no better decision than to decide that this will be the year you start to improve and maintain your cash flow.

Yes, cash flow. Doesn’t sound very exciting, does it? But let me frame it for you like this; whatever else you might have planned for your business, you’ll struggle to achieve much of it until you have healthy cash flow, and thus the business funding to make it all happen. New equipment, business promotion, additional employees, infrastructure and growth…without the funding to support it all, you’ll struggle to keep moving ahead.

This year is the year you do something about it. And it’s nowhere near as difficult as you might think it is.

Waiting around won’t help your business grow.
Ever had one of those times when business cash flow has been so tight that you feel like you’ve been holding your breath for weeks? You only get to finally relax when the payments start coming in again. So you don’t need me to tell you that businesses struggles to even run properly without enough capital, let alone move forward and grow.

Capital increases along with sales – that much sounds simple enough. So any profitable business should be in good shape…until we look at timing. Things can get tricky when we start to consider the gap that exists between the time you invoice and the time you’re actually paid. You need a cash ‘firewall’ to survive sometimes, enough available funding to pay wages, suppliers and sundry bills while your customers keep you waiting. That means either available money in the bank, or some other source of finance outside of your business.

A business funding option that’s in sync with how you earn.
There are plenty of business funding options available today, yet there’s only one that’s really configured to improve cash flow, and that’s Debtor Financing . You possibly know from experience that one of the most frustrating things in business is that during the times your Accounts Receivables are going gangbusters, your cash flow is at its worst. It’s an almost ironic (yet quite logical) cycle of opposites.

Happily, when you use financing that’s based on your Accounts Receivable, availability of cash rises along with the amount of invoicing you’re doing, so just when it’s crunch time for cash flow, available finance is at its peak.

Debtor Financing – simple and flexible solutions for small business.
The category of Debtor Financing that’s of most interest to us in the situation under discussion here is known as small business factoring. Simply put, it means that you get cash when you invoice instead of having to wait for your clients to pay you, so you can plan and progress instead of scratching your head and guessing at when cash will be made available.

Your business has funds advanced to it by the financing company (the Factor) according to the amount that is invoiced. For instance, if you bill your client $20,000 and you have an advance rate set at 80%, you’ll be advanced $16,000 at the time of invoicing, without needing to wait. Upon payment you’ll receive the remaining $4,000, minus the fee that the Factor charges you.

Debtor Factoring is a flexible solution that’s a proven worker for small businesses. You can choose to factor all of your invoices, or just a few. Fees are only based on the invoices financed, so you don’t wind up paying for funds that you don’t need, and your Factor even gives you credit monitoring and risk assessment regarding your client base, so you gain extra peace of mind into the bargain.

2013 doesn’t have to be another year of waiting.
You may have spent past years just waiting for ‘the time to be right’ to grow your business, waiting for that magical time when everything just falls into place. But you could wait for years for that to happen – and business planning shouldn’t come down to fate.

It’s exciting to think that this year a good, solid plan and some timely decisions could make all the difference in improving your cash flow and allowing you to predict, plan and grow. It’s time to tap into your businesses’ full potential, make use of what you earn and reach your goals. There is absolutely no need to spend another year waiting – now is the time.

Earlypay is a business financing specialist dedicated to helping small businesses grow by eliminating the wait between invoicing and payment. Our methods are straightforward, completely transparent, and could make all the difference in how your business performs this year. Simply phone 1300 760 205 to speak with one of our Consultants.

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].