You already know the importance of maintaining consistent cash flow. Did you know that your business’s assets can be the solution?
If your business’s cash flow is stifling its success, it’s time to look for a solution. Simple steps such as negotiating longer payment terms with suppliers and shorter terms with debtors can help.
If both of these steps have been taken but cash flow is still not cutting it, leveraging existing assets for credit may be the answer.
There are several options, and the terms ‘asset’ applies fairly broadly, taking in physical equipment, raw materials and stock, as well as a business’s existing debtors.
But there’s a bit of groundwork that needs to be done first, and business owners need a good understanding of their requirements before taking out a loan.
“They need to talk to their accountant or prepare their own cash flows to see the level of funding they need and for how long they’ll need it,” says an MFAA accredited finance broker.
Business owners considering accessing credit as a cash flow solution should approach an experienced commercial broker to assist them.
“A broker who specialises in commercial and business finance with particular emphasis on cash flow solutions would be able to help,” says the broker. “It’s important to partner with experienced finance brokers who do know what is available in the market.”
Please contact us on (07) 3844 4322 if you seek further assistance on this topic.
Source : Mortgage Finance Help January 2021
Reproduced with the permission of the Mortgage and Finance Association of Australia (MFAA)
Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.
Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
