Often there is the need for new or updated equipment to help the business grow, expand or become more efficient. There are many quality asset lenders including the Bank that will facilitate business finance to make that happen for you. You need to think carefully about any capital expenditure and make sure that the money you spend will be justified by the income generated by your new purchase.

Depending on the industry you work in, you may ask your customers to pay upfront or on completion or receipt, or you may agree a payment date. Unless you’ve agreed otherwise, your customer is legally obliged to pay you within the terms of receiving your invoice or getting the goods or service you’ve provided. If they pay late, you have the right to charge interest for late payments if that is in your terms. Terms and conditions form a valuable part of cash flow management.
If you’re having cashflow issues, invoice financing is a great way to solve your day to day business finance needs. This is when a third party lends you money against your unpaid invoices to help you generate cash when times are tight.
Poor financial management is patchy financial planning, chaotic bookkeeping, overinvestment (buying too much too early), and lacking any reserves. The latter could see your business flounder as soon as you need to make an unexpected outlay or you have a quiet period. The consequences of poor financial management for your business are clear: you may struggle to pay your bills, get into debt, and eventually be forced to shut your business down.
So lets not have that happen!
SMEs are working hard to make money and that new machinery or asset purchase could be the key to the next contract and/or the increased sales and profit. Most SMEs will use some form of business finance to acquire this asset. They then have to adapt their cash flow to ensure repayments are made on time. However, when the excitement of the new machine has worn off the reality of the new commitments that growth causes hits home. If the business finance did not take into account the increased working capital need that growth often causes, by the time it gets painful, the Bank might very well be unable to help.
Debtor finance is a good way for SMEs to manage their working capital needs. Debtor finance is based upon your outstanding debtors and invoices that the business issues. Therefore as the business grows, more invoices are issued and the debtor finance facility can flex with this. This flexibility is built in and does not require painful re applications for a facility every time the business grows.
If you are looking for a new machine/asset/truck/ute/drill and you also know you are about to grow, talk to a specialist cash flow solution creator as part of your business finance package here