Broker-Approved Invoice Finance a Big Help to Businesses

Cash flow is critical for the success of any business. There isn’t a company that became successful without some sort of funding behind it. But with that in mind, how does a company define success if the cash flow behind it isn’t as clear cut as it should be?

A recent survey conducted for brokers in Australia and New Zealand dealt with the repercussions of cash flow stress coming from the management of a business. The topics were diverse, but largely focused toward observing what people’s reactions are and what their tactics came to be against cash flow stress. Debt financing and debtor/invoice finance were cited as popular solutions.

It was discovered that about 1/3 of the brokers surveyed preferred advising clients to lean on debtor or invoice finance. The survey also revealed that improving a client company’s cash flow and invoice finance is on top of most brokers’ list. In this case, invoice finance stands for what’s ‘coming into’ a business and is more recommended than risking personal collateral—property or equipment-wise—to sustain a business and help it grow.

It was also found out that stress is high due to failed attempts at rapid expansion, chasing after invoices, and extended payment terms. These, of course, are due to poor business choices and bad debts, among other problems. High turnover rates rounded out the list of problems that businesses are not too fond of contending with.

Survey respondents continued the revelations by revealing businesses responded poorly to cash flow stress with a list of bad practices. They stopped paying invoices. They panicked. They sought financial help, but often found bad advice. Brokers said that, mostly, what they did to help was to improve invoice or debtor finance to help clients recover.

Brokers have turned to different solutions, such as debt finance or contract negotiations, to ease the problem of cash flow stress for companies. As easy as that looks like, however, in the end, it’s up to the companies to keep their problems to a minimum.

Worried about cash flows and finances to fund your company? Apricity Finance has you covered! To know more, visit their website at today!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.