Does your business require working capital but you are loathe to take out a business loan which comes with monthly repayments? OptiPay has a solution for you in the form of Invoice Finance.
Working Capital is defined as current assets less current liabilities, which is the amount of liquid assets (cash + debtors) less current expenses. Positive Working Capital means the cash at bank + receivables is greater than the current expenses (payables) of the business. Negative working capital balance means the business owes more than it has in cash available and what it will receive as income in the near future.
| Cash at Bank | $100,000 |
| Receivables Ledger | $450,000 |
| Payables Ledger | $300,000 |
| Working Capital | $250,000 |
In the above example, the business has positive Working Capital of $250,000 however the free cash position is only $100,000 as the majority of the Working Capital is locked in the receivables ledger. If there is a timing mismatch between when the debtors pay their invoices and when the creditors need to be paid, the business has a liquidity issue.
This short term liquidity crisis is one that many businesses face, particularly growth companies who need to spend upfront on marketing and opex but the income from that spend may not be received for as long as 90 days later.
OptiPay offers a flexible funding solution which is like a cash flow loan, but without the high fixed interest charges and the usual minimum term.
Typically, you receive up to 90% of your invoice/s value up front, in cash. You then receive the balance of the invoice/s, less the TIM agreed discount fee when your debtor/s pay your invoice/s.
You can get as much as 90% of your total accounts receivable ledger, at any given time. Get in touch with us to find out how much money you could raise today.
Solve your business cash flow needs with flexible, fair funding.
We’ve funded over $850 million to Australian business using their Account Receivables ledger.
No upfront Application fees, no property security required and no hidden fees.
We’ll provide the flexibility you require in order to manage your cash flows. No long lock-in contracts either.
Don’t wait weeks or months for your money.
This is Paul, he is one of the directors of UVS, a labour-hire provider to the construction industry. Here’s what he has to say about how OptiPay was able to help his business grow and succeed. Contact an OptiPay expert today to see how we can help you.
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OptiPay offers several different funding solutions and services, one or more of which charges no interest and has no long lock in contract period, called the Fully Flexible funding option. Conditions, fees and charges apply to some of the Services provided, which may change, or we may introduce new ones in the future. Full details for all funding options (Services) including any fees and charges which may apply, is available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the funding agreements provided, for your selected funding solution (product/service), including all the Terms and Conditions contained in agreements provided, before proceeding. *T&Cs: Minimum 12-month invoice funding contract with OptiPay. Direct clients only, offer doesn’t apply to broker introduced clients. All standard credit terms and conditions apply including credit assessment. Not applicable to existing clients.
