Managing working capital with short-term cash flow finance
Short-term cash flow finance is the final means of managing working capital, which we will delve into. Fintech financiers generally provide a lump sum to offer an immediate solution for cash flow requirements. Traditionally, lenders will assess a business’ ability to repay a loan based on historical data. In contrast, lenders in this space draw on […]
Trade Finance and Letters of Credit
Trade finance is another lending solution available to assist businesses in managing their cash flow effectively. This specific method is of particular relevance for businesses that are importing products from, or exporting to, an overseas destination – although can be drawn on for domestic use. Trade finance has been designed to fill the working capital […]
Managing working capital with receivables finance
In a recent blog post, we discussed ‘overdraft’ as a solution to adequately and effectively manage a business’ working capital. Another solution is ‘receivables finance’, which enables a supplier to collect invoices from their customers sooner than the agreed-upon terms. A receivables finance arrangement does not appear on your balance sheet, which is helpful if you […]
Managing working capital with ‘the overdraft’
When looking to manage working capital and cash flow in the most efficient way possible, there are a number of lending solutions that have been tailored specifically with working capital in mind. One of these solutions is the humble ‘overdraft’. This traditional facility provides a buffer for known cyclical or unexpected cash flow requirements. It […]
Determining your business’s capacity to borrow – working capital and quick ratios
Generally, a business’s working capital is calculated by subtracting their ‘current liabilities’ from their ‘current assets’. If this figure is found to be negative, it means a business cannot pay its bills, or self-fund its operations. To determine the liquidity of a business, a lender may utilise the ‘quick ratio’, which divides the value of […]
Converting UPE/Directors Loan to Bank Debt – The advantages
Utilising bank debt to restructure existing liabilities holds the potential to significantly change your company’s debt and equity structure. By transitioning internal liabilities, namely director’s loans and Unpaid Present Entitlements (UPE), onto the balance sheet as bank debt, you are poised to achieve multifaceted advantages and can optimise your financial architecture to suit your strategy. […]
5 must-knows for finding the right SME broker
Finding the right broker is no small feat. Come with us as we delve into the qualities that small-to-medium enterprises (SMEs) should look for in a commercial business broker. The Australian finance industry is booming, with many residential brokers diversifying their skillset and entering the world of commercial finance. But what does this mean for […]
What type of broker should SMEs be looking for?
In recent years many Australian brokers have diversified their service offering, expanding from residential finance into the world of commercial finance. However, there is a significant difference between the two – and more specifically, commercial property finance and commercial business finance. Take a deep dive with us into the Australian broker market, and what small-to-medium […]
Top tips on improving your credit file
Are you considering applying for a loan? If so, it’s time to look at your credit file and credit score. What is a credit file? A credit file is like a report card. It gives you a rating based on your financial history. It’s one of the first things lenders will look at when considering […]
Property Loan: Redraw Facility vs Offset Accounts
It is the age-old question: do I opt for an offset account or redraw facility on my investment property? We strongly believe in providing education and resources to help build your confidence in making financial decisions. The offset vs redraw discussion is one we have with our clients daily. We have put together an easy-to-understand guide with some […]