Cash flow troubles are not uncommon for small and medium-sized business owners. 29% of Australian SMEs have confirmed that cash flow issues had been a point of business pressure during 2020. Not only this, but most SMEs reported the same reasons for their issues: late payments from customers.

Very often, dealing with late payments from customers can impact business cash flow company-wide by impacting every aspect of the cash flow process. Having your hard-earned money tied up in a range of unpaid invoices can limit your company’s ability to operate as usual. It can lead to the inability to reinvest in your business and decrease productivity throughout the industry.

A decrease in productivity can cause a whole new plethora of problems for your business. You need to have the cash flow available to reinvest in the business and invest in your employees to boost productivity.

This is why a great way to assist with your cash flow problems while waiting for those late invoices to be paid is through invoice financing. Invoice Finance is an excellent option for any small or medium-sized business that is continuously seeing cash flow issues due to unpaid customer invoices. However, some SMEs may be hesitant to search for invoice finance options due to banks commonly turning down small and medium-sized businesses for a range of finance options. Luckily for them, non-bank lenders are here to help.

Non-bank lender, Grow Finance, tailor their finance options specifically to the needs of small and medium-sized businesses. This makes invoice finance an accessible alternative to Australian SMEs so that they can create an effective short-term cash management solution.

So, then how will it work to boost productivity? Let’s find out:

Minimise Stress

Running a business can be stressful and managing everything can be overwhelming. So when you are facing a lack of business cash flow and invoices are being paid late. Naturally, this can cause a considerable amount of stress, which is proven to decrease productivity. If you don’t need to worry about your business cash flow because of invoice finance, everyone is less stressed and can focus more on growing the business and staying productive.

Keep Business Relationships Positive

Continuously asking your meaningful business relationships to pay their invoices can strain the two parties and damage business relationships. While you have every right to have your invoice paid, typically, debtors are not as responsive to being pestered. By using invoice financing, you can wait for your invoice to be paid without needlessly bothering your business relationships. Keeping these relationships positive and moving smoothly can create a much more pleasant working environment.

Saves You Time

Chasing up on your invoices constantly can not only risk essential business relationships, but it also takes up a considerable chunk of your, often precious, time. If you choose to undertake invoice factoring as part of your invoice finance solution, then the responsibility for managing the collection of invoices moves away from your business. This will free up your time and allow you to do work you enjoy, which benefits the company, plus you won’t be losing everyday productivity because you are busy chasing invoices.

If your SME is looking to learn more about Invoice Finance, get in touch with the Grow finance team today, call 1300 001 420, or visit our website to find out more.