CFF
Cash Flow
Funding
Funding
Late Payments in NZ
Earlier this year a Dunn & Bradstreet (D&B) trade payment report highlighted some interesting facts;
- Larger companies are slower to pay their invoices than smaller companies.
- Auckland companies are slower to pay than other NZ companies.
- The slowest payers are typically businesses who have been trading for less than seven years.
- The industry which represented the slowest of the slow payers was “wholesale trade”.
Disclosed vs Confidential Factoring - Which is Better?
Let’s be very clear, the factoring of debtor invoices is a good thing. The ability to convert credit sales into cash will help any business develop stronger liquidity. The real issue is, what type of factoring facility (Confidential vs Disclosed) is best for your business?
Because Cash Is Still King!
“By withholding payments the large companies are affecting cash flows and restricting small businesses from thriving.”
“Large companies 'killing' small businesses by withholding payments.”
CFF Case Study
What follows is an example of how CFF “outside of the box” thinking could help your business. The problem is common (banks won’t increase the amount of available funding). The solution is part of our smarter business funding offer. The scenario is hypothetical.
The True Cost of Borrowing
When searching for business finance most people ask themselves a few important questions: How much money can we get? What’s the interest rate? How long will we have to repay what we’ve borrowed? (please read our earlier blog So, Your Business Needs Further Funding!")
Fund Your Working Capital By Using Your Best Asset - Accounts Receivable
Every day I speak with business owners about their financing needs. Often they are comparing our facilities with a bank overdraft or sometimes it is because they have already been declined additional funding by their bank.
So, Your Business Needs Further Funding!
Here's what a typical lender wants to know:
| 1. How much do you need? | 4. How will you pay it back? |
| 2. What will you do with it? | 5. What if something goes wrong? |
| 3. When will you pay it back? |
Understanding Business Funding
A business has different needs during its start-up and a growth cycle.
Choosing how to correctly fund your business is fundamental to its prosperity and in a broader sense to those forming business relationships with your business and also the economy as a whole.
Are you proactive in following-up on slow paying customers?
Being consistent when chasing debtors will help you to recover debts while maintaining good customer relationships. You should be contacting customers quickly about overdue invoices. If you offer payment terms of 30 days, begin following up as soon as payments are overdue.
