Being in business is tough, yet for New Zealanders it’s a popular choice to driving and maintaining a lifestyle of choice. However, we aren’t all millionaires, we don't all have a bottomless pit of money we can tap into. Well not in the first few years of owning a business anyway.

So how do you get business finance, and the right type, into your business to make it work for you?
When borrowing as a loan, usually the owner will go to their Bank. If the business has no assets or maybe it has profit but only a little, often the personal home is required to secure the business finance application. That can be a huge risk for the owner and their family. Sometimes things can go wrong outside of the owners control and what if they lose the house?
Once you have the loan, you need to repay it, regularly, on time, every month. Once you've spent the money, its gone, there’s no more, no flexibility, unless you go through a lengthy additional application.
When borrowing as an overdraft, usually the owner will go to the Bank. The need to place the family home as security for this product is often less, but, not guaranteed. The limit is set, and as the business grows normally the need is more and a further lengthy business finance application ensues. Too many requests for increases and often the Bank doesn't recognize the growth issues, but thinks there is a problem and actually tightens its policy rather than normalizing.

So you’d like business finance.
You would like a flexible facility to grow as you grow your sales.
You would like to keep the family home separate to the business venture.
Have you considered invoice finance?

SMEs trading B2B usually create a debtor book. When the business grows the amount the debtors owe increases. Often the time taken to collect the debt (cash) also stretches out. Creating longer to collect your cash in, with more expenses in resources to fulfill the growing business, creating a working capital cashflow hole.
Invoice finance closes this period between invoices being issued and cash being collected by offering up to 90% of the value of the invoice, for the business to use as a working capital facility, within 24 hours of the invoices being issued.
This is on a continually rolling basis. Issue more invoices, create more cashflow. Grow significantly and the invoice funder will assess your business finance need with you without the long process of additional applications.
If you’d love to find out more and how easy it is to get your cash working for you contact us now.