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| | Cash Flow Financing | |
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Cash Flow Funding is where a financier lends money against the balance sheet assets such as stock, debtors, plant & equipment and in more specialised industries the goodwill of the business.
Cash Flow Funding allows for funds tied up in various assets to be 'unlocked' to provide essential working capital.
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| | Debtor funding (factoring) | |
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Debtor Funding also known as Factoring is where a financier lends against unpaid invoices hence reducing the 'cash cycle' of your business and providing more funds to produce more goods/services.
Unlike conventional overdraft facilities which are based upon the value of real estate security offered, Debtor Funding facilities grow with your turnover providing more flexible funding solutions.
Debtor funding can provide funding up to 90% of the value of your invoices.
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| | Advantages of Debtor Funding | |
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1. Finance growth
2. Take advantage of supplier discounts
3. Remove the need to offer settlement discounts
4. Free up real estate security
5. Finance management buyouts and takeovers
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| | Inventory Finance | |
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Inventory Finance is designed to assist businesses purchase inventory for resale to their customers. Our Clients are typically profitable, well established, have current financials and annual sales turnover of $1M to $50M.
Clients are not usually required to possess equity in real estate to be approved for Inventory Finance.
Inventory Finance offers approved Clients:
- A revolving line of credit with facility limits ranging from $400,000 to $3.0M.
- Individual draw downs from as little as $100,000 and for terms ranging from 30 to 120 days.
- An advance rate of up to 90% of your suppliers invoice amount.
- Additional facility extensions to match the repayment to your needs.
- The ability to finance most new stock you purchase, ranging from raw materials to finished goods.
- No repayments until the conclusion of your approved term.
- No annual line fee, account keeping fees or inventory audit fees.
- Fixed interest rates for the term of your loan.
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| | Advantages of Inventory Finance | |
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Improve Your Working Capital
Have the flexibility to purchase stock and make repayments that match your cash flows, with certainty of payment dates and cost.
Expand Your Customer Base
Stop missing out on profitable sales and orders because of the short term need to exceed your available working capital and traditional funding lines.
Accept Seasonal Orders
Smooth out your cash flow, eliminating the impact of peak seasonal needs.
Grow Your Business and Profits
Start planning for greater growth and flexibility to expand your business, without the reliance on equity in property or restrictive traditional finance facilities.
Increase Your Purchasing Power
Harness the additional purchasing power of Inventory Finance and let your business achieve its potential.
Trade Discounts
Receive supplier discounts, bulk savings and reduced freight costs, through early payment and larger orders.
Utilise Extended Payment Terms
Take advantage of our extensions on seasonal purchases and display stock.
Pay When Sold
Have immediate title to your stock and pay for it in line with your normal inventory turnover.
Bulk Discounts
Obtain bulk discounts on wholesale purchases from your suppliers, by ordering in larger quantities.
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| | Balance Sheet Lending | |
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Balance Sheet Lending is designed to assist businesses fund their ‘Working Capital’ requirements by borrowing against the value of their Debtors, Work in Progress & Stock. Our Clients are typically profitable, well established, have current financials and annual sales turnover exceeding $7.5M.
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| | Acceptable Security | |
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| | Maximum Lending Value Ratios |
| - Debtors | 60% - Balance Sheet Lending |
| - Work in Progress | 30% - Balance Sheet Lending |
| - Stock | 40% - Balance Sheet Lending |
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| * Balance sheet lending is only available for loans over $1,000,000 for entities with an annual turnover exceeding $7,500,000 with audited financials statements. |
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