Why is there a rise in receivables finance in Australia?

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Why is there a rise in receivables finance in Australia?

In recent years, there has been a notable increase in the use of receivables finance for Aussie businesses to boost cash flow. According to financing experts, the cash-flow volatility often faced by small businesses has compelled them to seek funding alternatives. In that quest, many came to the gradual realization of using the accounts receivables to gain financing. Thus receivables finance has become a great medium to access cash flow. However, market reports suggest there’s more to it. On that note, let’s understand the reason behind the popularity of receivable financing in Australia. Understanding Receivables Finance Receivables financing allows business owners to get funds against a portion of their pending invoices or accounts receivables. They can access up to 90% of their receivables, and since the loan is pegged upon the receivable’s ledger, there is no need for security. The financing company or lender providing the funds charges the interest only on the used amount, not the entire credit limit. Receivables finance helps business owners to pay off their suppliers on time, continue with the production schedule and make other business investment decisions without being disrupted by low cash flow. Why do Aussie Businesses Prefer Receivables Finance?


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Why is there a rise in receivables finance in Australia? by Broc Finance - Issuu