Priming the cashflow pump
Tuesday, 16 October 2018
Cashflow is the lifeblood of all businesses. Maintaining a strong flow requires careful planning, discipline, and some key provider partnerships.
If you own a business, then it’s likely that cashflow, or the lack thereof, is the number one issue that keeps you awake at night. When a business is starved of everyday funds, even if invoicing and credit control management is up to scratch, it can open up all manner of problems going forward – not least of which, the ability of the business to thrive and grow.
There is no shortage of funding mechanisms and tools out there to help a business raise capital, such as bank overdrafts, opening the door to investors and business partners, or opting for one of the many online crowd-funding options available.
However, the answer to your cashflow and growth frustrations could be staring at you each time you open up your receivables ledger. The funds that are locked up in your receivables ledger may well be the funds required to transform your business from a pale, struggling entity to a rosy, healthy and thriving enterprise.
Debtor or invoice financing has become an increasingly popular means of helping Kiwi businesses through the year’s cashflow potholes and speed-humps.
Lock Finance’s lending manager Sean Hilton explains how both their full service factoring and debtor finance products assist B2B clients by smoothing out cashflow and providing access to up to 80 percent of the debtors balance immediately. “Both products can be used to fund sales growth, an acquisition, or assist in the funding of IRD arrears. And there is no need to provide additional security – so the family home is unencumbered.”