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Are your customers paying you quickly enough?

03 Oct

Customers not paying quickly enough? Need easy invoice finance?

Rupert Heather

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In every business, there will be times when cash flow constraints mean you need to collect payments as soon as possible. Even with the best customers in the world, you can’t rely on good will to get them to settle early.


A traditional solution to this problem has been to effectively sell outstanding invoices to someone else – typically a specialist company or a financial institution. While these sources of finance may solve your immediate problem, they often impose onerous business conditions such as long term commitments or the need for personal guarantees.


The good news is that innovative alternatives to procuring cash from credit institutions do exist. It’s now possible to access easy invoice finance that's low cost, flexible and fast and challenges traditional notions of invoice factoring and bank credit facilities.


No matter what stage of growth your business is at, the need for finance at any given time changes. Managing debtors and ensuring quick payment is vital to creating positive cash flows.
Making informed choices about improving the cash flow in your business helps avoid uncertainty and limit the risk of running dry. After all, growing your business means avoiding liquidity problems.

The Liquidity Problem

 

If capital is locked into customer invoices for long periods it can play havoc with cash flow management. An unexpected financial demand can leave a business short of funds. Wages, taxes, rents and overheads all put pressure on finances. A poor sales month, perish the thought, can also drain your cash resources.


Better working capital management:


• Offers the security of having funding available quickly
• Avoids uncertainty around unpaid customer debt
• Limits the risk of non-payment on cash flow
• Benefits companies with fluctuating turnover patterns
• Provides a source of capital for making essential business investments

Finance is available to increase working capital by converting credit sales into quick cash, without the use of collateral. 

Protecting Your Revenues

 

The word ‘predictable’ isn’t always one that’s applied to growing companies but in terms of cash flows it’s certainly desirable. Why? Because cash flow volatility can sap your energy and threaten access to new markets.

Converting debtors into liquid cash by funding invoice debt provides certainty that you'll be paid on time. Not only that. By extending their credit period you also help your customers.

Early invoice settlement is not a sign of weakness  for a company, it’s a key element of working capital management. By protecting cash flows you prepare for:

  • Unexpected demands for cash
  • Late customer payments
  • Seasonal demand
  • Periods of rapid growth

Working Capital to Fund Growth

 

  • Entering new markets and winning new business requires investment.
  • Having liquidity allows you to increase your profits by funding additional supply chain requirements.
  • Freeing up cash to fund expansion lets you concentrate on growing your business instead of worrying about funding it.

Therefore, growing businesses need a simple solution that provides the capital they need, when they need it.

Early invoice settlement helps you utilise additional cash to generate a return. You can grow your cash resources in proportion to sales and also increase the capacity for credit sales. Low cost, easy invoice finance reduces the opportunity costs of not having cash flow to fund growth activities.

PayMe from Celtrino - Easy Invoice Finance

 

PayMe automates the online purchase of your e-invoices so you receive upfront payment. It gives you working capital when you need it, without credit screening and long term contracts. It’s the hassle-free way to fund your outstanding invoices and manage cash flows.

You are in control – select the invoices you want to receive upfront payment for. Process them with just two clicks and receive approval within 24 hours. You receive up to 90 per cent of the invoice face value upfront and the remainder on final settlement.

Forget lengthy approvals, invasive credit checks and hidden fees, PayMe from Celtrino is the business friendly solution to all your invoice funding needs.

To see how PayMe from Celtrino can improve your business, contact us schedule a call from a member of our team. 

Watch this short video to find out more. 

 

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