Why Do Businesses Use Invoice Finance?
Video Transcript Businesses can’t grow without access to cash, and many businesses have a significant amount of cash tied up in their unpaid invoices, in other words, their Accounts Receivable Ledger. Although this is an asset on their balance sheet, it is a non performing asset, because your Customers are using you as a […]
What is the PPSR?
Video Transcript The PPSR, also known as the Personal Property Security Register, is a publicly available website, administered by the Federal government, where a provider of credit or finance can formally register a security interest over the borrower. Who is OptiPay? OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping […]
Why is the PPSR Important for Business Owners?
Video Transcript The PPSR is vitally important for business owners to understand, because by offering credit terms, what they are in fact doing, is offering a form of finance to their customers, because they are providing their goods or services for free, for the agreed credit period. Should that customer have an insolvency event, […]
Is Invoice Finance an Unsecured Loan?
Video Transcript No. Unlike a traditional loan, which requires P&I repayments on a weekly or fortnightly basis, Invoice Finance has no repayments, as it’s simply bringing forward the cash that’s owed to you from your Customers and we the financier are unlocking that cash for you. The financier (OptiPay) gets repaid when your Customer […]
Why Managing Your Debtor Ledger is So Important
Video Transcript Management of your debtor ledger is absolutely critical to the ongoing success of any business. Because if you send off an invoice, you deliver your goods or service, you send off the invoice in anticipation of being paid in, whatever your agreed credit terms are, which might be 30 days later. And […]
What Options Do Small Businesses Have to Fund Themselves?
Video Transcript They can access cash through a variety of means. One might be traditional bank debt, another option might be to invest money into their business themselves. But those two options may be difficult because we know with traditional bank debt, particularly post the royal commission is very difficult to access any sort […]
What are the Benefits of Invoice Finance?
Video Transcript The benefit of bringing forth the cash flow from down the track to today is that you’re obviously, as soon as you’re delivering the services or selling the goods to your customers, you’re accessing that cash. You’re getting access to that cash, rather than have it sitting as an asset on your […]
Invoice Finance Companies are Not Debt Collections Agencies
Invoice financing and debt collection are two disparate things that frequently get mistaken for one another. Though the two really have nothing to do with each other, misunderstandings abound. As such, it is a good idea to review the roles of financing companies and debt collection agencies, how they are different, and the common reasons […]
What are the Issues for Small Businesses in “Growth” Phase?
Video Transcript The main issue faced by businesses in their start up phase, which is say from start up to the first three years which is the real crux and we know the statistics that, unfortunately, eight out of ten businesses fail in the first three years. The impact on the Australian economy to […]
The Difference Between Profit and Cash
Video Transcript The difference between profit and cash, and it is a very important distinction that business owners must understand because as soon as they make a sale, it goes through the accounts as revenue. But they may not see the actual cash into their bank account for that for 30, 60 or even […]