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:: Cashflow Finance

Cash Flow Finance can help businesses which have good sales but a large current debtor list.

Cash Flow Finance (also called inventory finance or debtor finance) is simply the use of outstanding debtors/accounts receivable to raise working capital.

Cash flow finance is not a loan – it is the sale of a book trade debts/invoices for cash to bridge the cash flow gap between the time of the sale is made and the time of customer payment.

How does it work?

Although there is some variation between lenders, most cash

flow finance works like this:

Cash flow finance funder advances you up to 80% of the value of your debtors
You continue to chase accounts receivable as per your normal terms of trade.
As accounts are paid you repay the 80% plus costs to the cash flow finance funder.

This way you are able to use your current debtors to provide working capital for your business.

What does it cost?

Usually a percentage of the debt but some funders work on a flat fee basis.

How do I find out more information?

Contact us for a personalized quote or more general information on cash flow finance.

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RESERVE BANK DROPS CASH RATE BY 0.75%

At its meeting on 4/11/08 the Reserve Bank decided to drop the official cash rate by 0.75%pa to 5.25%pa - the lowest rate since 2003. We will see a lot of activity in the market as banks decide how much of the rate cut they will pass on to their borrowers. If you would like to know what rates your bank is offering give us a call.

GOVERNMENT INCREASES FIRST HOME BUYERS GRANT

The Prime Minister has announced an increase to the First Home Buyers Grant from $7,000 to $14,000. A further $7,000 will be available to buyers who purchase a newly constructed home. To find out more and how we can help you apply for the grant call our office or go to our first home buyer's page.

CONGRATULATIONS TO ALL OUR WINNERS

Thanks to everyone who visited our stand at the Gymea Village Fair. Congratulations to all our winners. Full details in our next newsletter.

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