When balancing the books on a weekly, monthly, quarterly or annual basis, many businesses focus primarily on sorting out issues from their side of the balance sheet, their perspective. Allocating the existing bank balance to cover individual outgoings due including bills, supplier invoices, rent and wages. Many seek loans and finance to cover short term shortfalls rather than taking a holistic approach and looking at both sides of the balance sheet. We’re talking about the difference between seeking a cure so to speak rather than simply treating the symptoms.
Follow us on this one as Business Finance provides commercial loan solutions which address multiple requirements for all types of businesses. Business loan interest rates vary across different finance facilities and selecting the specific loan product for that specific purpose may deliver a better outcome. Especially when that interest rate is the cheapest available.
This brings in the second point to this article –lender selection. Interest rates not only vary for the different loan types available but also across the business lending market – banks and non-bank lenders. As you can see from the lenders that we are accredited with, the market is extensive. It includes non-bank lenders which you may not have considered but which may offer cheaper options for your purpose, which we can access for you. Compare different deals with our online business loan interest rates page.
Let’s explore how business finance can deal with both the credit and debit side of the business balance sheet.
Dealing with Debtors
Looking at the credit side of your balance sheet and what is missing that’s causing the problem? Is it the money you are owed? Your customers not paying your invoices on time? Slow payment of business invoices is a major problem across many sectors and if not addressed can create serious issues for a business. If you don’t have the income to pay your suppliers, you could become a slow-payer yourself and that could impact your credit profile. A situation that can have long-lasting, negative outcomes. More info here.
Instead of addressing this issue on a monthly basis with say a quick-fix dip into your business overdraft why not consider a longer-term solution. Consider Debtor Invoice Funding. Our consultants set up these arrangements through our specialist lenders to fund customer invoices. Review the details on our webpage or just contact us for a quote.
Dealing with De-escalation
When one or some customers are persistent slow payers it could timely to look more closely at the situation. Does the slow-paying pattern indicate a potential, growing or emerging problem with that customer? Do they have inherent problems in their business that could potentially leave you out of pocket? There is a myriad of stories of businesses going out of business and leaving a group of disgruntled creditors.
If you suspect your customers are in that potential situation you will no doubt want to avoid the scenario escalating. Do you need to seek out new markets or customers?
Secured and Unsecured Business Loans are available to cover a wide range of purposes including goods and services required to facilitate business growth. Our team can source and tailor commercial loans to meet specific purposes at very affordable interest rates.
Dealing with Debts
When you have your own bills to pay and things might be a little tough right now on the income side, there are a number of both general and targeted commercial finance options. Business overdrafts are available through non-bank lenders to provide that bit extra during cash flow shortages.
There are some bills in particular that can place undue stress on cash flow when they are due each year and they are insurance premiums. Not all insurers of business policies offer a payment schedule and premiums on some assets and other essential coverage can be significant.
To deal with that debt, Business Insurance Premium Funding is a targeted commercial loan product. Through our non-bank lenders, we arrange finance of the premium which allows the business to pay the bill in part-payments over 12 months rather than in one lump sum.
Dealing with Development
When the business need is development there are numerous commercial loan options depending on the goods and services required to facilitate the development. For the acquisition of assets including equipment, vehicles, trucks and business cars the finance facilities include Chattel Mortgage, Commercial Leasing, Equipment Rental and Commercial Hire Purchase.
Sourcing the cheapest finance deal can be critical to realising the ROI and the repayments working with your cash flow. That’s where lender selection should be addressed. Interest rates, as well as financial conditions, vary across the lending sector and both should be taken into consideration.
Business Finance has access to a large number and range of lenders – both major banks and non-bank lenders, which provides us with capabilities to source the cheapest finance available that suits our customer’s requirements.
So regardless of which side of the balance sheet you’re dealing with – credit or debit – whether it is dealing with getting money in or dealing with keeping costs down with cheap acquisition finance, speak our professional team to discuss what cost-effective solutions we can source for you.
To discuss business lending needs, contact us on 1300 000 033
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.