Real Estate Values Can Limit Growth

Obtaining capital from a traditional financial institution to expand operations is an issue for many small business owners. This is especially risky when you consider that, for many people, their family home is on the line and soft real estate markets can have a detrimental impact on a business-funded on the back of the value of the family home.

Baby Wear Importer

As an example, a successful importer and distributor approached their bank for additional working capital to help grow the business by applying for an increase in their overdraft. The existing facility was secured by the family home which, they thought, was not highly leveraged.

This request for an increase in funding prompted the bank to re-value the family home and the new valuation report came in at a lower value than it was originally purchased for, putting any plans for growth on hold.

But Wait, … It gets Worse

To compound their dilemma, the bank then required they REDUCE the existing loan on the family home because of the lower valuation.

Taking a Positive Step

It was at this point that the business owner contacted Nova Cashflow Finance. Nova was able to provide the company with a debtor finance facility against existing debtors which released funds to pay-down the overdraft and better secure the family home.

This significantly reduced the risk of foreclosure on the family home and provided additional working capital which allowed the business to grow.

This growth continued because as sales grew the company’s funding availability grew as well.

Your Cash Flow Finance Solution Now

Why Debtor Finance

This is a classic example of how debtor finance works so well in growing businesses.  Whilst the working capital for the business was initially secured against the family home, business growth was always going to be limited to the value of the home. 

When real estate values get the wobbles, traditional “bricks and mortar” banks don’t look at the value of receivables, unpaid sale invoices or the growth prospects of the business; they only look at the valuation report.

Debtor Finance or Factoring can grow with your business as your business grows and is not reliant on the value of your family home or any other real estate value.

Free the Family Home with Debtor Finance and Factoring

What Our Clients Say About Us:

5/5

Since commencing business with Nova Cashflow Finance, their service has been impeccable, always working with our staff to meet deadlines and meet business requirements. The team at Nova Cash Flow Finance are easy to work with and have excellent interpersonal skills. Nova Cashflow Finance have a user friendly online interface which allows us to submit invoices, download reports and update customer information with ease.
I would like to ask you to consider Nova Cashflow Finance for your factoring needs of your company. I strongly recommend the services of the company.​

Connie

New Labour Hire Business

Nova provides our business with a reliable easy to use cash flow solution. Their funding has helped our business grow and develop. They have easy to use online software that is very transparent so we can see what is happening with each and every invoice. ​

Tyler R

Transport Business Owner

I don’t think I could operate my business without Nova Cash Flow Finance. They turn my loads into cash and keep my wheels rolling.

Clive S

Transport and Logistics Operator

Cash is King in our business and Nova Cash Flow Finance have solved our cash flow problems more than once. It’s one of the best moves we have ever taken.

John M

Distributor

Nova Cash Flow Finance have been a big help in our business. Keeping the cash flowing and helping us to pay our bills and grow our business.

Trish W

Contractor

Slider

If you have any Cash Flow Finance or Working Capital requirements, feel free to contact us on 0467 299 303 or email us at operations@nbf.com.au.