As a business owner do you often wonder why cash flow is always an issue. It is now 2017, where invoices are mostly sent by email and paid by EFT or credit card, so why hasn’t cash flow improved? The Market Invoice global study 2016 identified Australian Businesses ranked last (slowest to pay). The study found Australian invoice payments were on average paid 26 days after trading terms. So, if your business operates on 30-day trading terms then you are not getting paid until 56 days after the invoice was issued. Many businesses still use traditional methods to manage their cash flow;
- Overdraft
- Slow payment to core suppliers
- Slower payment to non-core suppliers
Over time this may result in slower business expansion, as there is insufficient cash flow to support the achievable growth. We have access to a range of innovative solutions that mostly meet our client’s needs. These may support your business expansion and reduce your costs. Contact us to discuss your specific requirements.