How to improve your business' cash flow
You already know the importance of maintaining consistent cash flow. Did you know that your business’s assets can be the solution?
If your business’s cash flow is stifling its success, it’s time to look for a solution. Simple steps such as negotiating longer payment terms with suppliers and shorter terms with debtors can help.
If both of these steps have been taken but cash flow is still not cutting it, leveraging existing assets for credit may be the answer.
There are several options, and the terms ‘asset’ applies fairly broadly, taking in physical equipment, raw materials and stock, as well as a business’s existing debtors.
But there’s a bit of groundwork that needs to be done first, and business owners need a good understanding of their requirements before taking out a loan.
“They need to talk to their accountant or prepare their own cash flows to see the level of funding they need and for how long they’ll need it,” says an MFAA accredited finance broker.
Business owners considering accessing credit as a cash flow solution should approach an experienced commercial broker to assist them.
“A broker who specialises in commercial and business finance with particular emphasis on cash flow solutions would be able to help,” says the broker. “It’s important to partner with experienced finance brokers who do know what is available in the market.”
Please contact us on 03 95039604 if you seek further assistance on this topic.
Reproduced with the permission of the Mortgage and Finance Association of Australia (MFAA)
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