Every business goes through rough patches — times when money is tight, and you’re wondering how you’ll get through the coming weeks to pay for operating expenses, and wages.
Research shows that more than half of all start-up businesses will fail within four years. Insufficient capital is the key reason that businesses fail. A lack of money can also lead to other issues, including:
- Not being able to plan for the future
- No money for ads or marketing to sell your products or services
- Underestimating your competition
The good news is that invoice finance can help and by providing SMEs with the working capital they need to cover operating expenses and for growth.
Invoice Financing Provides Predictable Cash Flows
Unpredictable cash flows hinder many businesses especially when undergoing growth. Without steady income, it can be difficult to maintain daily business operations, like:
- Meeting payroll
- Paying fixed overhead expenses like rent
- Buying raw materials
- Hiring new employees
- Updating software and hardware
Your company needs money to survive. When you choose invoice financing, you won’t need to wait for customers to pay you. You’ll get up to 90% of the invoice value paid to you when you issue your invoices, and that will relieve you of the burden of unpredictable cash flow. The other 10% will come (less a small discount fee) when your debtor/customer pays the invoice 30-60+ days later.
Invoice Financing Frees up Your Time
As a business owner, you know that when times are tough, you need to focus your energy where it’s most needed. Invoice financing can help you do that.
Invoice Finance companies like OptiPay provide business owners with the steady cash flow and back-office services they need, including:
- Credit checks and approvals on new customers
- Payment processing
- Client portal for account management
- Trade credit insurance over your customers in the event that they go into insolvency
- Reminders on when to expect payments form your customers for the 10-20% that you haven’t received upfront
With these essential tasks off your plate, you’ll be able to focus on providing top-notch customer service, attracting new business and growing your company.
Invoice Financing is Available Even if Your Business Credit Isn’t Great
What if you’ve been struggling for a while and your business credit score has taken a hit? The good news is that invoice financing is an option for you.
There is less stringent credit requirements than banks and credit unions with invoice finance. You don’t need to have a perfect business credit score. In fact your clients credit score is more important than yours as the financing company needs to ensure that your clients will pay your invoices in 30-60+ days.
So even if your business has hit a rough patch, is on an ATO payment etc we can help you by providing the cash flow you need to get back on track.
The Rough Times Don’t Need to Bring You Down
Keeping a business afloat during a rough patch or during high growth can be difficult, therefore partnering with an invoice finance company like OptiPay will remove the stress, get you the cash you require on an ongoing basis (ie: every time you sell your good or services and issue invoices), at very cost effective rates.
Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
