In today’s rapidly evolving business landscape, with low barriers to entry and a strained economy, securing financial stability is essential for businesses to succeed and scale at a competitive rate.
Whether you’re a small startup, a medium organization or a well established enterprise, the key to growth is capital. Having access to the right financial resources and expertise can make a significant difference in achieving goals and scaling your operations. This is where financial solutions companies, such as OptiPay, come into action and serve as experts.
In this article, OptiPay explores how sourcing and partnering with a third-party finance company can expedite your growth journey and boost your business potential. We’ll highlight the advantages of leveraging the services of a finance company and how they can contribute to your business’s prosperity.
Access to Capital:
The primary benefit of partnering with a finance company is gaining access to the capital necessary for expansion, capital you may otherwise not have. According to the Australian Bureau of Statistics (ABS), inadequate access to growth funding is a major challenge faced by businesses, particularly small and medium-sized enterprises (SMEs). Finance companies specialize in providing customized financial solutions that are tailored to a business’s specific needs, offering avenues for working capital, invoice financing, equipment financing and more. With increased access to capital, businesses can invest in new industry verticals that expand their revenue streams, streamline their operations, invest in R&D and hire more skilled personnel – all of which ultimately drives growth.
Expert Financial Guidance:
In addition to their customisable financial solutions, finance companies provide a wealth of expertise and industry knowledge. These professionals are well-informed in various aspects of financing, including risk management and financial planning. According to a Deloitte survey, 84% of Australian businesses reported that accurate, data informed financial planning was essential for success.
By engaging the services of a finance company, you unlock a team of experts who offer valuable insights, have the skills to develop strategic plans, and can help you navigate complex financial challenges by simplifying the variables and potential outcomes. Their guidance can enhance your decision-making and thus, optimize your business’s financial performance for growth.
Improved Cash Flow Management:
Maintaining a healthy cash flow is critical for a business’ sustainability. However, many businesses struggle with cash flow management. Although business owners are passionate in the industry they operate in, they may not be well versed in cash flow management. Poor cash flow management can lead to operational difficulties and missed growth opportunities.
The Australian Small Business and Family Enterprise Ombudsman reports that late payments are a significant problem in Australia, with small businesses owed an estimated $26 billion in outstanding invoices. Finance companies assist in mitigating this issue by providing invoice financing solutions. This permits businesses to access funds based on outstanding invoices, that they would otherwise have to wait months for, bridging the gap between accounts receivable and accounts payable and providing immediate cash flow (whilst also focusing on risk management!). By improving cash flow, businesses are better equipped to meet financial obligations, budget for unexpected expenses and focus on growth.
Mitigating Financial Risks:
The unpredictable nature of the business landscape in Australia does leave companies vulnerable to various financial risks – consider the pandemic and trading of companies internationally. As mentioned, these risks can include market volatility, seizure of trading, interest rates, and changes in regulatory requirements.
A finance company can help businesses mitigate these risks by implementing strategies and financial tools that minimize exposure, and create a buffer for unexpected speed bumps. For example, options such as interest rate swaps can protect businesses from financial volatility (depending on the markets your business operates in). By leveraging their insight to develop risk management strategies tailored to your specific circumstances, financial solution based companies can safeguard your business from unforeseen financial shocks.
Enhanced Efficiency through Technology:
Advancements in financial technology, commonly referred to as FinTech, have revolutionized the financial services industry. There are various forms of FinTech’s, for example, OptiPay. These tech-based financial service businesses are at the forefront of using innovative technologies to streamline processes. The adoption of services such as automated invoice financing, business line of credit, trade financing and invoice financing allows your company to leverage the financial benefits without altering your operations. The result is seamless and efficient cash flow management, access to capital and risk mitigation.
Businesses who adopt financial solutions services provided by third-parties are at a greater advantage to succeed as it provides them with much-needed capital for expansion and access to expert advice on financial strategies. The statistics and data collected from external sources highlight the importance of financial support at all stages of a businesses life cycle, so consider exploring the options available to your business.
Consider your business goals and find a financial company that supports this. For assistance, get in touch with OptiPay.