3 cash flow problems every business dreads & how to fix them
At Naritas we get to see the no holds barred truth of business cash flow. Here are 3 problems we commonly see business applicants struggling with and some ideas on how to fix them.
You hit an expensive month
There are a number of reasons that this happens including an unexpected tax bill, higher staff costs for the month, or you had to purchase more stock. Preparation is the best defence. It may be useful to set aside money in your budget each month as a safety net. By doing this, it’s like spreading the cost of the expensive month out over a number of months.
A client doesn’t pay on time
For many SMEs, cash flow is crucial. If a client doesn’t pay on time, a spanner is thrown in the works. When you’re a small business owner you don’t have enough time to wait months for an invoice to be paid. Contrary to the notion of these unpaid invoices being deadweight, they can be put to good use through invoice financing as assets to borrow money against. There are a number of companies who are able to provide fast invoice finance to help you meet your financial obligations.
A timing mismatch in accounts receivable and payable
In some situations, cash flow problems are due to poor timing. For example, your business might invoice on 90 day terms but your accounts payable are on 30 day terms. A situation like this can lead to ‘lumpy’ cash flow, with some months of surplus, and other months that run very tight. It might be worthwhile to look into the timing of your receivables and payables to see if you can create a better match.
No financials required & no property required as collateral*
Naritas understands that you need quick decisions and that you may not have your business financials up to date.
That is why between now and March 31st any commercial finance application between $100K & $250K will not require lengthy applications or financials. As an added bonus the money can be made available in your business account within 7 days.
Would you like help arranging finance for your business?
The team at Naritas are experts in delivering timely guidance & finance approvals. We have over 100 lenders on our panel & a high quality team of dedicated credit advisers to steer you efficiently through the approval process.
*Terms & conditions apply. Please contact a Naritas representative for further details.