Invoice Finance can lift profits, improve productivity and save time.

In this video, you’ll see how a small manufacturing company was able to triple its returns by factoring single invoices.

While this is a hypothetical example it shows you what is possible.

The next step is to apply a similar calculation to your business.

The question to ask is, “will the benefit of having cash at my fingertips to invest in my business outweigh the factoring company’s fee?”

If the answer is yes and the benefit is significant what is holding you back?

Let’s go through the example again.

You build state-of-the-art rickshaws.  They cost you $15,000 and construction takes 10 days.

Your customers buy the finished vehicle for $20,000 and pay in 30 days.

So, it takes 40 days for you to get your working capital back, make a profit of $5000.

Rather than waiting the 30 days to be paid you sell the $20,000  invoice for cash you can use right now to build two rickshaws.

As the video shows, your net profit after taking account of  fixed and variable expenses is $11,000.  While the cost of factoring was $1,000 you’ve almost doubled your income for the month.

In the next scenario, you decide to sell the two invoices and use the money to build 3 rickshaws.

Because the invoice you sell is of a higher value than before, the fee you pay to the invoice finance company is higher – about $3,000.

Despite that you triple your profits to $15,400

Think about this. The opportunity lost by not using invoice finance would have been more than $10,000.

However by taking your chances you now have a cash surplus you can use to continue growing the business.

Learn more about how single invoice finance works, what other options are availablee and their benefits to your business please watch the other videos.

For an informal discussion please call me on 1300 430 076.