Receivables Management Finance

UNLOCK INSTANT CASH FLOW FOR YOUR SME

Tired of waiting 30, 60, or even 90 days for customers to pay their invoices?

Frustrated by the amount of time and energy you spend chasing customer payments?

Late payments can strangle your cash flow, hobble your business growth AND force you to spend valuable time chasing clients for money.

Receivables Management Finance is a game-changing business financing tool that:

Turns your unpaid invoices into immediate cash AND
Frees you from debt collection tasks – for good!

For many small small businesses, “collections” is a daily load of stress and frustration. It can also be a constant distraction from core business operations.

Receivables Management Finance is a practical, efficient, solution-driven approach to cash flow management that lets you focus on building your business, instead of chasing payments.

KEY FEATURES AND BENEFITS OF RECEIVABLES MANAGEMENT FINANCE FOR SMES

WHAT DOES RECEIVABLES MANAGEMENT FINANCE ACTUALLY DO?

There are two key things that Receivables Management Finance does:

Delivers Instant Cash Flow: Say goodbye to cash flow shortages.
Receivables Management Finances uses the best of today’s practical, integrated financing tools to convert your outstanding invoices into immediate working capital. Instead of waiting months to get paid, you receive cash within days – so you can cover expenses, pay staff, and seize growth opportunities without delay.
Freedom From Chasing Invoice Payments: Say goodbye to acting as a debt collector.
With Receivables Management Finance, your financing partner takes over the task of following up with your customers. You are free from the burdens and costs of chasing invoices, and can focus on building quality customer relationships.

WHAT DOES THIS MEAN FOR YOUR BUSINESS?

The BENEFITS of these two core functions of Receivables Management Finance are what grows businesses and their impact. The results that these two deliverables offer your business include:

Focus on Core Business & Growth: With cash flow worries eased and collections handled by experts, you can redirect your time and resources to what truly matters – growing your business. You can spend time on strategy, sales, customer service, and innovation instead of forever chasing late payers. Your satisfaction goes up and your stress goes down.
Smooth Operations & Stronger Relationships: Steady cash flow means you can pay suppliers, rent and employees on time, every time. By removing cash crunches, you strengthen your reputation and build trust with partners. Consistently paying on schedule can also improve your creditworthiness, giving you more leverage with vendors and more future financing access.
Flexible, Scalable Funding (Without New Debt): Receivables Management Finance grows with your business. The more sales you make, the more funding becomes available – without taking on extra traditional loans or going through further approval processes.
Protection for Your Personal Assets: There’s no need to put up property as collateral or juggle repayment schedules. You’re simply accessing funds you’ve already earned (through your invoices), using a smart, flexible cash flow tool that doesn’t saddle your company with additional debt.

By leveraging these benefits, you can maintain a healthy cash position and avoid the recurring cash flow crunches that holds so many businesses back.

RECEIVABLES MANAGEMENT FINANCE – THE KEY TO FINANCIAL PEACE OF MIND FOR YOUR BUSINESS

It bridges the gap between billing and payment, so your business keeps moving forward.

Imagine having the confidence to take on a big new order because you know you can unlock the cash tied up in your receivables immediately.

Are you ready to stop worrying about cash flow and start focusing on growth?

TALK TO A WORKING
CAPITAL STRATEGIST

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WHAT IS RECEIVABLES MANAGEMENT FINANCE?

Receivables Management Finance is a powerful business financing tool that combines expert customer management services with today’s leading Invoice Financing tools. The result is a seamless, trouble free and affordable Accounts Receivable solution that enables Australian SMEs grow, through:

Super-professional Receivables Management Services delivered by expert business finance communicators; PLUS
Carefully selected Cash Flow Finance tools that advance up to 80% of the invoices you bill within 24 hours.

Additionally, Receivables Finance Management offers you the option to protect your Cash Flow from unexpected customer failures with Debtor Insurance at affordable wholesale rates.

WHAT DOES RECEIVABLES MANAGEMENT FINANCE DELIVER?

Immediate access of up to 80% of the amount of the invoices you bill, enabling you to invest in your business strategy instead of last minute bills.
Automated funds delivery through integration with your Cloud accounting tools.
Reduced admin and accounting costs and stress of endlessly juggling bills because customer payments aren’t in (or even due).
Reduced stress, frustration and relationship hassles, when in-house admin staff attempt late payment follow ups.
Better customer relationships – because you can talk opportunity with you customers instead of invoices.

WHAT DOES RECEIVABLES MANAGEMENT FINANCE COST?

Receivables Management Finance is a business finance product. Like any business finance product – from a credit card to an unsecured overdraft – it comes with fees and risk-based interest charges.

What’s different about Receivables Management Finance is that the risk assessed is primarily the ability of your customers to pay agreed invoices (not your projected business performance).

Receivables Management Finance is customised to your business needs, so the exact costs will vary. However they are competitive with other finance products, and come with the added benefit of no more chasing payments.

Here is an example of how the product works.

A RECEIVABLES MANAGEMENT FINANCE EXAMPLE

Let’s say that you’re using Receivables Management Finance to access cash now on 30 day or 60 day customer invoice payments.

Let’s also suppose that you’re paying an interest rate of 12% per year plus a fee of 1 to 2% for each invoice “mini-loan”. So if your customer’s invoice is on 30 day terms and they pay promptly, then your costs are 1 to 2% in fees and 1% in interest (2 to 3% overall).

On an invoice of $10,000, that’s $100 in fees and $100 in interest.

The financing tool is integrated with your online accounting tool (for example, Xero or QuickBooks) – so there’s no extra manual paperwork or approval process.

That $200 in fees and interest will put $8,000 in your bank account today – which you can use today to buy stock in bulk or upgrade a computer. (When your customer pays, the $200 cost is taken out of the $2,000 balance and the remaining $1,800 goes into your bank account.)

(Plus you have zero in-house costs for the work of following up any late customer payments.)

Whether that’s “expensive” depends on the return you get on what you do with the funds that Receivables Finance Management liberates.

NO AMOUNT OF “BETTER CASH MANAGEMENT” CAN FIX YOUR INDUSTRY’S STRUCTURAL CASH GAP

All the administrative discipline in the world can’t change the impact of “baked-in” credit terms with long payment periods.

Long credit terms will still have you waiting weeks – and even months – for a big customer to pay a big invoice. During that time, payroll still has to be made, the ATO wants their due, and your suppliers have to be paid to buy materials for your next job.

Even good businesses that show excellent profits at the end of the financial year can operate in and environment of recurrent, stressful, productivity-killing periods of cash flow drought.

HOW CAN YOU RECOGNISE THE CASH TRAP?

THE COSTS OF THE CASH TRAP ARE HEAVY AND CUMULATIVE

If you don’t have sufficient working capital in your business, then you can end up:

Not being able to pay suppliers on time – and possibly being put on credit hold.
Constantly juggling expenses and trying to make it through the week.
Not being able to take advantage of bulk purchase and early payment discounts.
Not being able to invest in up-to-date equipment and infrastructure.
Missing out on new business opportunities that need money to access them.
Not being able to action business innovation.
Not paying YOURSELF for all the work you do.

With Receivables Management Finance maximising the flow of funds into your business, you can…

Increase the amount of available cash you can access to grow your business.
Get “off the phones” and get on with building your business.
Decrease the stress of endlessly juggling supplier invoices and payroll while you wait for customers to pay you.
Increase your business productivity.
Reduce the stress, cost and relationship damage of in-house payment and debt collection attempts.
Invest in better tools and infrastructure to improve your efficiency and your margins.
Take advantage of new business opportunities.
Have more time to work ON your business, not just IN it.

Is Your Business Stuck in a Cash Trap?

Talk to Martin about how you can get back in the drivers seat

Book a Call

ISN’T RECEIVABLES MANAGEMENT FINANCE JUST INVOICE FACTORING?

Long-time finance people have asked me this question a lot – because the product looks similar to an older finance product. My answer is both “Yes – sort of…” AND “No – not really“…

Both a Bell telephone and a smartphone are called “phones” and both make phone calls – but that doesn’t mean they do the same thing the same way.

YES – THE KEY MODEL AND UNDERLYING PRINCIPLES ARE SIMILAR

YES – you do essentially “sell” your uncollected invoices to someone else to collect, hence outsourcing the work of collection and getting paid up to 80% of their value up front.

NO – THE TECHNOLOGY IS 21ST CENTURY SMART

NO – Today’s responsive finance solutions are far smarter and the admin overheads are minimal, thanks to today’s Cloud accounting and a wealth of integrations and information management tools.

NO – IT ISN’T THE “LAST RESORT BEFORE CALLING IN ADMINISTRATORS”

NO – Receivables Management finance is NOT parcelling up a whole lot of doubtful debt from a struggling SME business so that a strong-arm collection agency can try and collect enough cash to keep them afloat.

Receivables Management Finance is a proactive, intentional upgrade to your business’s Working Capital Strategy – an upgrade that reflects the 21st century reality that SMEs cannot function efficiently with the chronic cash flow malnutrition caused by 30/60 day credit terms.

It’s a way to stop treating your Cash Flow scurvy with remedial dentistry and started getting the nutrients you need to keep your business strong.

OUR FULL-SERVICE RECEIVABLES MANAGEMENT FINANCE TOOL IS 21ST CENTURY SMART

You don’t need to do a whole lot of extra administrative work to get your cash flowing with Receivables Management Finance.

You simply invoice your customer in your online accounting system – and RMF puts around 80% of that amount in your bank account the next day.

Our super-professional, experienced collections team then monitor for your invoice payments due and follow up your customers courteously and persistently.

TRADITIONAL BUSINESS FINANCE DOESN’T MEET TODAY’S SME BUSINESS NEEDS

Australia’s big banks have increasingly become building societies – only interested in loans secured by property and other tangible assets. The process of getting a loan is hard work, the approval process takes time, and you end up putting your assets on the line.

The “bank of family and friends” that used to proved substantial unrecognised funds is drying up – badly impacted by today’s increasing cost of living challenges.

RECEIVABLES MANAGEMENT FINANCE IS SUPPLIED BY ENTREPRENEURIAL BUSINESS THINKERS

The same entrepreneurial types who brought us the Internet, eCommerce and Cloud-based accounting tools have ALSO developed a whole range of smarter, SME-friendly finance products.

These products are specifically designed for smaller businesses. They’re smarter, more flexible, more accessible – and overall more responsive to SME business finance needs than traditional finance sources.

Martin Cattach is an expert Working Capital Strategist

Over more than 15 years in the business finance field, Martin has analysed the finances of thousands of businesses.

His decades of experience in the finance industry, Information Technology – AND in small business – uniquely equip him to assist SME businesses to select and implement the best finance solutions for their needs.

Martin will quickly built a Working Capital Cash Flow plan that will take the financial stress out of your business operations and free up the funds you need to grow your business impact.

TALK TO A WORKING
CAPITAL STRATEGIST

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WHO SHOULD (AND SHOULDN’T) USE RECEIVABLES MANAGEMENT FINANCE?

RMF works well for those businesses who have a long lead time between purchasing their inputs and getting paid for their work.

It’s useful for industries that are growing including:

Construction
Manufacturing
Transport
Wholesale
Fashion

RMF is generally NOT suitable for:

Sunset industries where growth is trending down
Short payment cycle industries such as hospitality

Frequently Asked Questions

The costs vary depending on the product and your strategy. Typically, you’ll pay a single, up-front loan establishment fee, plus a monthly service fee.

On top of that will be interest on the invoices you raise – which applies only until your customer pays you.

There is no such thing as a free lunch. Yes, there IS a small administration overhead – because you need to reconcile customer payments, loan fees and loan amounts. However, the interfacing and the payment process are automatic.

This happens – and while there is a process to go through, it can be well worth doing.

The responsive finance product range is developing rapidly so I recommend:

reviewing your Working Capital and Finance strategy when daylight savings changes over (every 6 months).
writing an exit plan as part of your initial Receivables Management Finance implementation strategy.

Essentially, Receivables Management Finance is about handing over your debt collection to a third party – the end result is that your customers pay that third party finance provider.

However, customising the specific Debtor/Invoice Finance choice for your business is part of the process.

Debtor/Invoice Finance can be either “disclosed” – which means that your customers know about the arrangement.

Alternatively, non-disclosed Debtor Finance is a product where the finance provider is undisclosed and the customer sees themselves as paying “you”.

Both are good tools – DEPENDING ON YOUR NEEDS AND YOUR BUSINESS.

So make sure you get good advice and choose the right product – because you can end up with a non-trivial changeover workload down the road if you choose the wrong type.

Perhaps – some products allow you to use “partial ledger finance” – and borrow against just some of your customers (perhaps the big customers who demand long credit terms). Other products will take over all your Debtors.

Yes. That’s why you need to:

Be strategic about how you use the extra funds you gain access to – use them to grow your business.
Consider a price increase to cover the extra costs – after all, your customers are essentially borrowing money from your business.

YES! Your Receivables Management Finance package includes a followup and collection service performed by skilled professionals.

That it means that the people following up on your behalf have a degree of distance from the customer – and a whole lot of experience.

Receivables Management Finance

UNLOCK INSTANT CASH FLOW FOR YOUR SME