Video Transcript
So the issue with a business loan and look, they’ve got their purpose and they are very good. If you need a business loan to go and buy a piece of capital equipment or to upscale the business to take on a new project, then it may well serve its purpose. But the problem with the business loan is that a soon as you take the loan, you need to start repaying it on a principal plus interest repayment schedule, which is typically on a nine or twelve month loan.
So these loans tend to be short term, short twelve months loans. So therefore, the repayment schedule is quite significant, which means that unless you can afford, unless you’ve taken that money to improve your business and grow your business, and as a result you’ll get an improvement in your income in flow, by taking a loan, you may actually result in your business going backwards because you can’t afford to make the repayments. Where is within invoice finance, it’s not a loan, there are no repayments. You are accessing the cash that’s owed to you anyway from your customers, and you don’t repay that, the debtor pays it when they pay on the agreed payment terms.
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.
