Cash Flow, Debtor, and Invoice Finance in Townsville: What You Need to Know

If you run a small to medium sized business in Townsville, you may have heard of invoice finance before. Townsville companies of all kinds have made excellent use of invoice finance (also called debtor or cash flow finance) in cases when they can no longer afford to wait for a client to settle an outstanding debt with them. Despite this, many people in the region have questions about what debtor finance is and how Townsville businesses can benefit from the process. If you’re one of those people, this article will help you understand the situations in which cash flow finance can give you an advantage under pressure.

First, it’s important to comprehend exactly what invoice finance is. For those of you who are not yet familiar with the concept, here’s a brief overview of how it works: a business that is owed money sells the invoices that their customers have not yet fully paid to a third party, who assumes the rights and responsibilities of collecting the debt. This approach offers several advantages to the seller, not the least of which is that they receive money faster than they would through waiting. Think of it this way: if you pursue cash flow finance in Townsville, you’re using a portion of the money you would otherwise have to wait for to receive the rest almost immediately.

So, what are the circumstances under which invoice finance can help your business? Imagine this: you must pay rent for your facility at the end of the month, but your business is counting on using the profits from a job you’ve recently completed to pay your property management company. Unfortunately, your client can take up to two weeks to pay you, and it’s already the 24th. By selling your invoice to the right third party, you can receive enough money to cover your rent within a much shorter window—as little as a week with certain companies.

How to Start Looking for Invoice Finance in Townsville

Nova Business Finance provides an example of a company that offers successful and reliable debtor finance solutions. We understand the time constraints that many of our customers are under, so we work closely with them to determine fair prices for their accounts receivable and pay them out on short notice. It’s common to approve our clients within 24 hours, and have their money within a week. Think about it this way: if you got paid today for the work you did yesterday, imagine what you might be able to accomplish tomorrow.

Let Nova Accelerate Your Cash Flow

Turn your unpaid invoices into cash that you can use right now when you factor your accounts receivable with a company like Nova Business Finance. Our quick response times, ability to deal directly with clients, and 24-hour approvals make us one of Australia’s most trusted and successful finance companies of our kind. Call today for more information, or to speak with us about factoring an outstanding invoice today.