Quick ways to boost your business cash reserves
Better Loan Solutions in Mornington Peninsula • Learning Centre • Insights
Better Loan Solutions in Mornington Peninsula • Learning Centre • Insights
With the first quarter coming to an end, many businesses are taking stock and assessing their cash position. Typically, the December to
January period can be quieter for certain businesses and that means you could be running low on cash reserves.
Fortunately, there are two solutions that businesses can explore to boost their reservesFor small business owners, ensuring enough money
is coming in to operate is the biggest issue most will face. Getting a good grasp of your business’s cash flow situation will help put you
in a strong financial position as we head into 2023.
Asset Refinance
One strategy to consider is an asset refinance, particularly for recent outright purchases of equipment or vehicles made in the last six
months. With the value of hindsight, businesses may question whether it would have been more advantageous to finance these acquisitions
upfront. By opting for a simple purchase and hire-back arrangement, coupled with competitive financing terms, businesses can replenish
their cash without compromising their operations.
Asset refinance works by leveraging existing assets, such as machinery or vehicles, to unlock cash that is tied up in these assets. Instead of outright ownership, businesses can opt for a financing arrangement that allows them to retain the use of the assets while freeing up cash for immediate needs.
This approach not only injects much-needed liquidity into the business, but also spreads the cost of asset acquisition over time. At the same time, asset refinancing offers the added benefit of preserving working capital for other essential expenses or investment opportunities as they arise.
Low Doc Working Capital
Another option worth considering is tapping into low-documentation capital facilities, which can provide a cash boost, or an ongoing
overdraft-like solution tailored to the business' needs. Unlike traditional loan applications, low doc working capital facilities require
minimal documentation, streamlining the approval process and enabling businesses to access funds quickly.
These facilities offer flexible repayment terms and access to funds on demand, allowing businesses to manage their cash flow effectively. Whether facing unexpected expenses, capitalising on growth opportunities, or bridging temporary cash shortfalls, low doc working capital options can provide a versatile financial lifeline for a range of businesses.
Low doc working capital facilities are also designed to adapt to the evolving needs of businesses, offering scalability and customisation. Businesses can adjust the amount of credit they require based on their own changing cash flow requirements, meaning that the funds are available when they need them.
Let our in-house Mortgage Broker guide you through the process.
LIVE EVENT
3rd May 2024
Welcome to Mornington Peninsula's original pop-up pre-loved market with a difference. Fashion For A Cause is a not-for-profit
fundraiser event. Grab a fashion bargain or unique piece, wine with friends, bid on silent auction items, all to raise funds for Clothes
4U.Inc. All proceeds from the event including stall sales, ticket sales and clothing purchases on the night will be
double-dollar-matched and donated to Clothes 4U Inc.
Going through a divorce or separation is undoubtedly challenging, but it's essential to take control of your financial future. By understanding the impact of separation on your assets, seeking professional advice, and creating a solid financial plan, you can navigate this difficult time with confidence.