Newsletter #2

AIF rams head logo

October 2018 Newsletter

The period from September to November is known as the “deal writing season” in the invoice finance industry. This is typically when we write most of our new business. With this in mind, I am pleased to announce the launch of our new product, “Easy Invoice Finance”.

What is Easy Invoice Finance?

Our new Easy Invoice Finance facility simplifies the process for brokers and SMEs to access working capital without any lock-in contracts or minimum terms.

Easy Invoice Finance doesn’t require complicated financial statements, so is ideal for those small businesses with limited reporting capabilities. Therefore, it really is the perfect try-before-you-buy invoice finance facility.

As Easy Invoice Finance is a cash flow product, not a loan, it provides a continual injection of cash as a business grows. Furthermore, it does not require property as security as a loan does.

AIF offers commercial rates with credit management available upon request.

In summary, we offer:

  • Fast, 24-hour approval
  • A flexible, small business product
  • Limits up to $250,000
  • No minimum term
  • No minimum fee

All we need to approve the facility is:

  • The debtor’s ledger summary
  • Creditor’s ledger summary
  • A brief summary of the business
  • Six months of bank statements
  • An ATO portal balance

And the commission we pay to brokers makes it really worthwhile.

Easy Invoice Finance is perfect for small businesses who:

  • Have slow-paying debtors
  • Sell on a B2B basis
  • Have completed the sale of their goods and services.

It’s that simple!

 

So, enough with the sell job; on to some technical stuff.

As we quickly approach Christmas, many SME’s sales are going to increase. This is a great time of year when good profits can be made but there are also some pitfalls, particularly as we get closer to the holiday period. Just as invoices fall due, your customers have to pay holiday pay, businesses shut down and invoice payments drop off. So, what can be done to alleviate these risks?

Plan ahead

Find out if your major customers are closing down their back office and for what period. If this occurs during the period that their invoices are due, make provision to receive your payment on time or early.

Complete your invoice audit trails

Double down on getting your invoice audit trails complete. How do you do this? Insist on purchase orders, put the purchase order number on your invoice and get a signed docket from whoever receives your goods or services. Make sure it has your invoice number on it.

If you get these ducks all in a row there is less chance you will fall foul of the risk of the holiday absence of the person who placed the order or received your goods. You don’t want to be stuck in a situation where they’re off with their family down the coast having a great time and you can’t get your money.

Do your credit checks

Be wary of large orders from small or new customers. Equifax is a great source of credit information on most Australian businesses. New customers with large orders may just be moving from unpaid suppliers to a new victim!

Done Deals

The last few months at AIF have been really hectic. We have been writing record deal numbers and our broker friends have been really supportive. What sort of deals have we been writing? You are all, no doubt, aware of our Done Deals series of case studies, but in case you missed the last few, just click on the links below:

Done Deal #40 – Australian Invoice Finance provided a factoring facility to help a Sydney based labour and building services company overcome funding problems and enter a new phase of growth.

Done Deal #39 – An Australian Invoice Finance factoring facility enabled a Sydney based meat-wholesale business to implement a turnaround strategy and trade forward successfully.

In the press

In this article for The Adviser magazine, I provide my top tips for taking control of small business finance.

This feature article for Inside Small Business magazine identifies five common characteristics of successful small businesses.

Okay, that’s it from me, until next time.

All the best,

Greg

Greg Charlwood
Managing Director
Australian Invoice Finance Ltd
0421 006 873

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