Working Capital & Invoice Financing: Financial Solutions for Businesses
Wade Oldham Finance can help you understand how cash flow solutions like working capital finance and invoice financing solutions operate and their advantages and limitations. Let us help you select the right solution to ensure continued, stress-free business operations.
Working Capital & Invoice Finance: Determining the Right Choice for Your Businesses
Wade Oldham Finance’s experts have almost 30 years of experience guiding Australian businesses of all sizes to make the right financing choices. We offer tailored solutions based on your growth objectives, purpose for financing, cost of financing, collateral available, and other business-specific factors. Additionally, our experts will compare costs associated with each financing option, including interest rates and fees, to help you make a well-informed decision. Speak with our experts to decide whether working capital or invoice financing is right for your business based on your needs and long-term goals.
Working Capital Finance
Working capital finance is a flexible loan that helps businesses maintain operational efficiency and capitalise on growth opportunities like machinery upgrades and property purchases. This type of financing can take the form of lines of credit or trade credit. As a short-term financing option, it is ideal for businesses needing immediate liquidity. Unsecured loans can offer a quick solution for younger companies, though they can have high borrowing costs. In contrast, established firms can secure more favourable terms with collateral. While this financial solution does increase debt levels, it can be a great way to maintain financial health and operational efficiency when managed professionally.
Invoice Financing
Invoice financing helps businesses access immediate cash using their outstanding invoices. The company achieves this by selling its invoices to a financing company (factor) at a discount. The business can also use the invoices to secure a loan for property purchases, motor vehicle purchases, and machinery upgrades. This approach provides immediate funds and improves cash flow. Invoice financing is often more effective when dealing with consistent, creditworthy customers. Since cash flow remains steady and is linked to the value of the invoices, invoice financing reduces the risk of bad debt, offering a valuable way to continue business operations.
Why Choose Wade Oldham Finance
Wade Oldham Finance’s extensive knowledge of the commercial property finance market and years of commercial experience enable us to take a broad view of your business’s financial needs and objectives. We can advise you on structuring your commercial property loan debt to minimise risk and maximise your advantages. Speak with our financing specialists today for a customised financing plan that helps you achieve your investment objectives.
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