Australia’s finance market has become increasingly competitive in recent years. And thanks to a range of agile and flexible non-bank lenders who specialise in meeting the unique needs of SMEs, there are more finance opportunities available to small and medium enterprises (SMEs) on better terms and conditions than ever before.
Many lenders offer the convenience of online applications, with swift turnaround times and fast access to various credit solutions. Through this method, businesses benefit from a quick cash injection or loans that span up to 30 years. Consider applying online for the most efficient results regardless of your financial needs.
Successful businesses understand that access to capital is necessary for growth. Quick action is needed when a company needs funds to hire more employees, purchase new equipment, or increase stock holdings. Likewise, when business declines due to seasonal changes or unexpected expenses arise, a reliable source of capital is essential. For these reasons, it pays to plan ahead and have strategies in place for accessing capital whenever the need arises.
Flexible borrowing facilities such as Overdrafts, Lines of Credit and Cash on Call accounts are many businesses’ first line of defence against working capital shortfalls. You can use them whenever you need to and then pay them back when you don’t, so they are an efficient way to smooth out your cash flow without incurring unnecessary long-term interest payments.
Invoice Finance
For businesses with money tied up in debtors and outstanding invoices, Invoice Finance can provide a quick and easy cash injection. Instead of waiting weeks or months to be paid, you can access up to 95% of what is owed to you within 24 hours, as and when you need to.
There are many different forms of Invoice Finance to explore, ranging from confidential funding arrangements for selected large invoices to end-to-end accounts receivables and collection services run by third parties on your behalf.
Trade Finance
Trade Finance provides up-front funding for purchasing inventory and raw materials, so you don’t have to turn away new orders. And if you’re buying or selling abroad, Trade Finance also makes international transactions easier. It enables importers to cover cash flow gaps of up to 180 days and to lock in forex to take advantage of favourable rates. For exporters, it is a way to offer customers longer payment terms without straining their finances.
Asset Finance
Asset Finance can fund up to 100% of the value of the tools, equipment and vehicles you need to support the growth of your business without tying up working capital and restricting your cash flow. Alternatively, it can provide access to capital by releasing cash tied up in your business’s assets.
Because the asset provides security for the credit facility, you don’t need to use your home or other property as collateral. Asset Finance allows small businesses to spread a cost of an asset over the length of their working life. Depending on the finance agreement terms, you can take ownership of the asset once the final instalment has been made.
Business Loan
A Business Loan is a property-secured long-term borrowing facility that allows you to unlock the equity in your home or business premises with less paperwork and supporting documents than a traditional mortgage. The loan is repaid over terms of up to 30 years, with options to redraw or make extra repayments while you put the capital to work in your business to fuel growth and development, fund a start-up or a business acquisition, or refinance existing debt on better terms.
Do you have questions about the financial options best suited to your enterprise? Get in touch! We can provide guidance, as well as information on the numerous finance products accessible to you so that you can make an informed decision. Don’t wait – call us today to get started.
Original article by By Richard Holdcroft adapted with permission from ScotPac.
Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor to imply any recommendation or opinion about a financial product. It does not consider your personal situation and may not be relevant to circumstances. Before taking action, consider your circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
