No matter how well established your business is, invoice payment can be a real headache. It can wreak havoc on every other aspect of your business – establishing credit, paying employees, ordering supplies, an emergency repair and more. You name it and a slow-paid invoice can cause trouble with it. That is where it comes in handy to have invoice finance Sydney available to you through Magnolia Finance. Basically, invoice finance Sydney is a fairly risk-free way to borrow money in the form of a short-term loan using your existing invoices as collateral. I’ll explain further.
With invoice finance Sydney, you can use outstanding invoice payments that are owed to your company as collateral for a short-term loan. Of course, you also have to pay a certain percentage of the invoice amount as a borrowing fee but, other than that, you will have much needed money upfront to take care of the many problems that can arise from a slowly paid invoice. When your slower-to-pay customers finally pay your invoice, you can pay back the short term loans Sydney or you can arrange comfortable monthly installments to repay the short-term loan. The advantages: first, you have money when you need it rather than 3 months down the road and, second, any regularly paid debt improves your credit. It is a win – win arrangement.
Now, let’s take a good look at a couple of ways that invoice finance Sydney can save the day for your business.
Let’s say, for example, that you have a major repair that needs done – a plumbing nightmare or a delivery truck that needs immediate repair – you know you will not be able to pay for it until a certain invoice is paid for but, that invoice is not due for another 60 days. What do you do? This could be a business crippling problem except that you can use invoice finance Sydney to get the funds immediately to take care of the problem.
Here is another example: your business is doing fairly well considering that it has only been running for a year or so but, it is not established enough to have a payroll account and you need to hire new employees to keep growing. You can’t really expect to be able to pay new employees without a payroll account, right? Wrong. Just use invoice finance Sydney to apply for a short-term loan. Now, you can pay for a couple of new employees without worrying about how you are going to pay them.
No matter what short-term need arises in your company – needing repairs or new equipment or new employees – using invoice discounting Australia to obtain a short-term loan is an excellent solution! And, it is a fairly risk-free solution as well because you know the money is coming that you need to repay that short-term loan. It just so happens at the time that you can’t wait for an invoice to be paid to take care of something at your company.