How can I secure cash for my business fast?
Mark O'Keeffe
Equipment Finance | Ensuring my clients are comfortable with their financial decisions
Small business owners know all too well that the unpredictable nature of any industry can sometimes mean that quick access to cash flow is needed. Mark O’Keeffe from TPH Australia presents some of the options available to you when you’re faced with a cash-shortage.
Equipment Finance
For many small businesses, especially those in the hospitality industry, income and cash flow are heavily reliant on functioning equipment. So for restaurant owners who find their delivery truck has suddenly decided to call it quits, turning to equipment finance could be the best solution.
“Supported by most major and subsidiary lenders, rates are offered competitively at around five to eight per cent. Where a chattel mortgage, a mortgage on a commercial vehicle, is elected, borrowers own the asset from day one and can claim GST payments upfront, which enables greater cash flow within the business as well as interest and depreciation add backs,” says Mark. “Ultimately, I would recommend this solution as they are safe, structured and can have tax benefits associated with ownerships.”
Unsecured Business Loan
A fast and modern alternative to traditional banking methods, an unsecured business cash loan doesn’t require you to use a business or personal asset as security. It also has the advantage of speed with 90 per cent of their loans being approved and funded within 24 hours.
Not suited for start-ups, this option has stricter guidelines as approval is based on how long your business has existed, how long you’ve been at your current address, and on monthly sales.
So if you find that you may fall short in covering rent for your company’s premises, this could be the solution most convenient for you.
Trade Finance
A fast and easy way to unlock cash tied up in your business Debtor Financing / Invoice Factoring these products pay your invoices now, freeing up your cash flow. They do not require property security and you only pay for what you use.
With this type of financing you need to be disciplined with it and my advice is not to use it with clients who are very slow of have never paid in the past.
To give your business a good chance of success, contact us for a confidential discussion on 02 9042 0777 or [email protected]