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Sensible funding options for small businesses.

Risky Business

Small businesses in Australia have been using the equity in
their own homes to raise funds for their small businesses. This is incredibly
risky and due to the fall in property prices, they have been searching for
other funding options. The slowdown in the housing market in Australia will
contribute to the minimal cash flow for small business owners. If a property
was valued at £1 million, business owners could receive up to 80% of the value
in funds, which is a hell of a lot of money, revaluing the property and the
drop in the market means a drop in funds. Incredibly, this is the most popular
way of securing funding, this is due to the fact that there are limited funding
options available in Australia, until recently Invoice discounting and
factoring were unheard of especially for small businesses.

New funding solutions

The great thing about Factoring is you only receive the
amount of funds within your owed debt, through your invoices. You can’t go
overboard with the amount of money you are lent. Keeping a head on your costs
and profit. In addition, companies tend to receive the funds within 24 hours
rather than wait weeks for a decision. Companies in Australia are moving away
from using their own money from property, to keep business going. They now have
the option of Factoring.

Moving to sensible

The only down side financiers have seen with factoring is
fake invoices sent from companies, fortunately to get around this problem, they
have employed specialists to speak to companies and check the invoices are
genuine. Hopefully, not just in other countries, but the UK will wake up to
realise that factoring is an easy, legal and quick way to generate funds
through their own invoices. It’s safe, and it allows companies to continue with
business and not risk the equity on their own homes.

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