It’s a big word- Superannuation and in some it strikes fear in to the hearts of business people and companies, but what does it actually mean?
Superannuation is a regular payment made by an employer or employee, towards a pension. In Australia, the government has been chasing those companies who are failing to keep up with their superannuation payments and creating pressure to make sure those people are contributing to pensions.
The only problem has been, finding the finances for many of these companies to be able to pay the superannuation. So, they have turned to alternative funding and other means of raising finances using invoices to send to clients.
This way of financing allows companies to raise funding very quickly, bringing forward the pay dates of invoices and receiving a lump sum of money. This is then used, in this case to pay the superannuation. Many companies use the money to pay bills and debts, other invoices, to pay staff or invest in new machinery so that their companies can grow.
Invoice discounting is a great way to raise funds quickly without having to fill out applications, without having to wait around for decisions, without having a minimum or maximum limit on the amount of money that you can receive.
Companies can use all of their invoices – factoring or a choice few select factoring, to raise the cash they need to continue with business. This is a great way to have a steady flow of cash through the business and when it is time for the final payment of invoices from customers, you receive the rest of the amount minus a small fee for using a factoring lender.
If you need to raise business finances and quickly, consider factoring with a trusted factoring lender- such as the Select Factoring team.