Research and Development Projects funds by Factoring Invoices

Research and Develop New Products and Processes

As small business owners we are frequently told that we are the backbone of the economy, not only, do we create jobs but small businesses are actually innovation hubs. Due to the fact that more often than not small businesses are working in circumstances where every dollar counts, we are often the ones that have the big ideas in terms of streamlining processes. Unfortunately, many small businesses never attempt to develop the ideas they have because it can be very costly to take on the invention of new software or machinery. That said you can use Factoring or Invoice Factoring to release the capital you need for the project.

Government Support Available

You would be surprised at the number of government grants available for small business research and development. In fact, it is completely possible that come to the end of the financial year you will not be out of pocket with the assistance of government grants and refunds and you could be well on the way to revolutionizing your industry.

The fact that you will have to fund the research yourself before the grant money comes through is obviously a valid concern because often there is not too much available money in a business to allocate to such a cause. This is another situation where debtor finance could prove to be useful because it could help to bridge the cash flow gap.

Now that Cashflow is Financed

If you have an idea that you think is worthwhile exploring there is support in the business community for you to do it. Not only could you be enhancing your own business but you could be creating a product or process that many other businesses also have a use for, so consider invoice factoring to release your hidden capital to fund your project.

 

Move Your Business Online Funded by Invoice Factoring

Take your Sales and Marketing On-Line

We live in a world where if you are not online as a business you are missing out on a huge percentage of the population.

However, it is not simply enough to have a website that directs a customer to call or visit you. People want to be able to fill out applications or order and shop for your products or services online. If you have an online presence it must be maintained and actually useful for your customers. If it is not, they will go to competitors who make it easier for them. Keep your website updated, if you change your phone number, make sure your website is updated because otherwise, you are giving away business that could have easily been yours.

It’s All Happening Online

It is also important to market your business online. They say if you aren’t on the first page of a Google search you won’t be found because often people will not look beyond page one. If you don’t show up on page one of Google, do something about it! Search engine optimisation is a huge industry these days so if you do not know how to do something, start learning or employ someone to do it for you.

 

Online marketing can be some of the most specific out there so it is important you understand how to find and target your customer and if this is through Google ads or Facebook ads. Even if you don’t think that your target market is particularly active online you would be surprised at just how many more people you can reach through this method.

 

All this requires capital if it’s going to be done correctly and effectively. Many businesses don’t or can’t do it because they think they lack the capital and therefore they lack the focus.

“ I don’t have sufficient capital so no use thinking about it”

Debtor finance or invoice factoring can change all that, it can change the way you think about your business and the way you plan the growth in your business.

 

 

 

 

 

 

 

 

 

 

 

 

It is also important to market your business online. They say if you aren’t on the first page of a Google search you won’t be found because often people will not look beyond page one. If you don’t show up on page one of Google, do something about it! Search engine optimisation is a huge industry these days so if you do not know how to do something, start learning or employ someone to do it for you.

 

Online marketing can be some of the most specific out there so it is important you understand how to find and target your customer and if this is through Google ads or Facebook ads. Even if you don’t think that your target market is particularly active online you would be surprised at just how many more people you can reach through this method.

 

All this requires capital if it’s going to be done correctly and effectively. Many businesses don’t or can’t do it because they think they lack the capital and therefore they lack the focus.

“ I don’t have sufficient capital so no use thinking about it”

Debtor finance or invoice factoring can change all that, it can change the way you think about your business and the way you plan the growth in your business.

Interstate or International Expansion Funded by Factoring Invoices

Expand Interstate or Overseas

Once you are comfortable and well established in a market, it is time to consider expanding. With the extra working capital that debtor finance can provide, you may be able to do this despite how ambitious it might seem at first.

It is important not to rest on your laurels, your competitors aren’t!

Respond to Your Customers Needs

If you have had interest from customers in different regions and states and were not able to provide your services to them at the time that they needed it, give them a call! For all, you know they could still be interested in your product or service now that you are ready to expand (and they may even know others in that region you can supply).

Keep in mind that if you can’t serve a customer that is also in other locations or regions, the customers business may move all their purchases to a competitor who is able to service their needs in all regions.

However, when you decide to expand an operation it is imperative that you have conducted significant research and put together a comprehensive exporting plan.

Pay Attention to Trends and Changes

You must be prepared to pay as much attention to this new market as you do your existing one. New exporters can easily fall into the trap of not paying enough attention to their export market when their home market is booming, this half-hearted approach will never create any results and in the end, you will be wasting your money.

If you do not have the capital to start exporting to a foreign market by yourself, it could be beneficial to look into piggyback distribution. This is a situation where you form a partnership with a company who is already established in the market you wish to enter and use their distribution channels to enter the markets. For example, if you make printers you would partner with a company that sells computers in your desired market.

Overall, it is important to diversify and expand your market in order to mitigate risk.

Invoice Finance and Factoring to Fund Expansion

Expand in Different Products Services and Regions

In any business it is difficult to stay relevant if all you offer is one product. However ground breaking the product might be when you first enter the market; there will soon be copycats and competitors that show themselves and if you are not keeping current you will lose out to these new entrants.

A tactic to stay relevant may be to offer complementary services or products. If you offer everything that your customer needs why would they go anywhere else?

As an Example

For example, if you own a computer shop, you could safely assume that your customers will also want to buy printers, external hard drives and keyboards. You could also assume that they will want somewhere to service or fix their computer when something goes wrong. Perhaps you could offer customers specialist training on high level software or offer older customers lessons on the basics of using a computer.

Telephone systems are becoming more and more hi tech and may have a synergy. Photocopiers and other office technology may also have relevance depending on your target market and location.  The point is that you offer everything your customer needs and the more you offer the more convenient you become. If you are considered a convenient option for your customer, then you can charge a premium for this and a customer will happily pay it.

Be Current and Efficient

You should always be looking for a point of difference from your competitors and by continually creating new products you are sure to do this.

Contact Nova Cash Flow Finance to learn more.

Debtor Finance or Factoring can Finance Your Plant and Machinery

Purchase Equipment or Machinery to Streamline Your Workflow

Purchasing new equipment and/or software for a workplace can sometimes be a huge lump sum cost for a business and a drain on working capital. Nevertheless, it is important to realise that by having the most up to date software and machinery you are reducing cost and saving time. You are also remaining current and up to date.

Common Mistakes

A common mistake that a lot of business make is holding on to an older piece of equipment that is constantly breaking down. Not only are you paying money repeatedly to repair this old equipment or have new parts shipped in, but you are causing delays in the production line or the distribution chain which may result in a loss of customers who are sick tired of experiencing the same delays. They will go to a competitor that does have the latest, the best and the most reliable.

In addition, you are also likely to be increasing labour cost due to down time when plant and equipment is out of action. Sometimes the task may need to be completed manually or in some inefficient and costly way.

Update your plant and equipment

It is also beneficial to simply update outdated software because clients value suppliers that use the latest technology. For example, think about how inconvenient it is when you come across a cash-only establishment in this day and age.

Across the board, it is in your best interest to keep software and machinery up to date, it will save you money in the long run by streamlining processes and keeping customers happy

 

Use Debtor Finance to Fund an increase in Sales or Production Staff

Employ More Sales Staff or More Production Staff

Often when small businesses start gaining momentum with marketing, log jams can be created in their sales funnel. This means that you are unable to keep up with the number of new inquiries you are attracting. If you don’t respond to an enquiry you will lose the opportunity, there are plenty of competitors out there ready to eat your lunch! Often, if you are attempting to do everything yourself as an owner-operator you can find yourself wasting time with dead-end leads and missing out on potential clients because you have taken too long to get back to them.

As a business person it is important to recognise that you cannot do everything yourself and even if you cannot afford to employ someone on a full-time basis it may be beneficial to look into outsourcing sales tasks. Outsourcing offers a plethora of benefits such as scalability, reduced costs, and trained staff.

Either way, having more working capital will allow you to take up one of these alternatives which should result in business growth.

Employ a BDM

Many businesses also find it helpful to employ the services of a BDM (business development manager). The person in this role will take care of sales by maintaining and growing existing clients as well as following up on interested parties, in addition to making cold calls and chasing new business. You will be updated on their progress, but you are able to use your time to focus on the bigger picture.

You can also add manpower and staffing to your production or distribution department, so you give better service to your customer.

Use Invoice Factoring to Boost Your Sales and Marketing

Increase sales and marketing budget

It can be hard for business owners to justify a large marketing budget. Now more than ever, there seem to be more and more free options available to reach new customers.  Whilst free or very cheap, options like email and social media both have their place in the marketing game. it often takes the skills of a professional to actually make these channels reach the right demographic and keep them maintained to a high standard. This costs money and this is where Invoice Factoring can help.

Sometimes, as a business owner, we have to admit to ourselves that we don’t have the time or the skills to do our own marketing. In this case, it is worth increasing your marketing budget to employ the skills of a professional. You reap a return on your investment with the new customers you will attract. At the same time, you will also be giving your existing and your new customers the attention and service they expect. This is because you are focusing on the customer and not putting all your energy into marketing.

Invoice factoring releases capital and allows you to concentrate on your core skills.

Choose Your Target Media

One of the most under-utilised options when it comes to advertising in industry publications. This is the perfect way to reach your target market, there is no question it is reaching the right people because the only people engaging with an industry publication are those already in the industry, those looking to get into the industry and at worst those who are close to the industry.

Advertising in a trucking magazine seems much less glamorous than creating a colourful Instagram campaign, but, in reality, if you are looking for truckers you may as well spend your money somewhere that you know they will be listening.

It is also important to note that we live in a world where potential customers are being constantly flooded with emails. Consider this when you are creating an email campaign, how will your email stand out? Visual stimulation is a great way to stand out because the human brain will process images faster than words. It could be in your best interest to employ a creative type to take charge of this process for you and don’t forget you can reuse visuals and logos once they have been created, so think of it as an investment.

Target and be Focused

Precise and efficient marketing will attract the type of customer you want and sometimes you have to be willing to spend money to get to this demographic.

 

Use Factoring Finance to Negotiate Prompt Payment Discounts from Suppliers

Negotiate prompt payment discounts from suppliers with Factoring Finance

 

Factoring finance is a tool that you can use in many ways. All businesses love customers and clients that pay quickly. They do not have to chase for payment. In fact, suppliers love prompt payers so much that they are often willing to offer discounts to those who do it consistently. You can be one of those customers by using Factoring finance.

Understandably, though many businesses are simply not in a position to pay within (say) 7 or 10 days on a regular basis. If debtor finance or factoring finance is effectively used you could be in a position to do this. As a result, you might be able to negotiate as a discount. You could reduce costs and allocate more funds and resources to grow your business.

Become a Preferred Customer

In addition to giving you discounts, suppliers will often give prompt payers access to other benefits. These can include benefits such as first access to new products and general preferential treatment.  That may include your orders being pushed through first. Your suppliers LOVE prompt payers. Factoring finance can put your business in that position.

Many small businesses can find it intimidating to negotiate with a supplier. It is important to remember that you will not reap any of the benefits of a good relationship without actually starting a conversation with your supplier.

You Should Negotiate

Negotiation is not everyone’s strong point, but it is crucial for business owners to know that they are the ones with the ultimate power in these situations. If they have the cash that is. It is up to you whether you buy products off of them, not the other way around.

Another tactic that many businesses employ, is utilising multiple suppliers. This ensures that you are keeping everyone honest and on their toes. When you have more than one supplier they are aware that they are in direct competition with each other.

Prompt payment discounts can be arranged with suppliers and it is possible to be a prompt payer by utilising debtor finance.

Learn to negotiate and do not be afraid to walk away from a supplier if they are not offering you the best price.

To find out more about factoring finance click here.

 

Use Debtor Finance or Factoring to Buy More Stock

Buying more stock/inventory using Debtor Finance or Factoring

It is common practice in business to work using a “just in time” inventory management system. This means that you hold minimal stock and buy “just in time” to fulfill anticipated orders. Hopefully, you have anticipated soon enough. Many don’t realise you can use debtor finance or factoring to cash flow your inventory.

Obviously, for businesses that are just starting out this method minimises risk as capital is not being held in excess stock.

However, for more established businesses, or businesses keen to grow; there are arguments for holding some additional stock.

 

These include:

1. Increasing customer satisfaction

• It is a known fact that we live in a world where people are used to getting what they want instantly, like NOW; and this is no exception in your business. By holding more stock you are able to fill orders quickly and therefore guarantee customer satisfaction.
• In addition to filling everyday orders promptly, having an inventory of stock means that you are able to cater to customers that need orders filled “right now” instead of simply having to turn these customers away. When you are able to solve a supply problem with that Customer you have been trying to get for years, you may have won a customer for life. Again, debtor finance or factoring can assist here.

2. Reducing costs by taking advantage of supplier discounts

• Suppliers and wholesalers often offer significant discounts when you buy in bulk when you buy more units. So not only are you decreasing the cost per unit but you are able to also take advantage of potential sales that the additional inventory brings.

3. Greater control in the event of supplier delays

• Unfortunately, it is not unheard of for suppliers to experiences delays. This can happen unexpectedly and often when you need stock fast. So, especially if you are in an industry that often experiences these issues, it can be helpful to mitigate the risk of this by having a level of inventory that you can use to fill orders in the meantime. If there is a jam in the supply chain your competitors are also likely to be impacted so not only are you reducing risk for yourself but you are gaining an advantage over your suppliers.

4. Larger range of stock is better for merchandising

• Also, having a larger range of stock available for immediate purchase is better for promotional and merchandising purposes. Customers will be attracted to a store that looks like it stocks a large assortment of products and having full shelves helps give off this impression.

Overall, it is in your interest to think about how buying more inventory could benefit you by reducing both costs and risk.

A business that need to carry stock should consider debtor finance and factoring to fund their stick acquisitions.

 

Want to know more; click here

Unlock Your Hidden Capital and What to Do With It

Introduction About Your Hidden Capital

Growth is the goal of all businesses, unfortunately, it can be difficult to allocate the resources and funds to do this when stock needs to be bought, wages paid and outstanding invoices loom. However, if businesses had the capital that they had earned today in their hand tomorrow rather than in the standard 60 to 90 days then the funds to grow your business would be available. Many don’t know it but there is capital sitting idle in many businesses. This is about releasing your hidden capital and what you can do with it  This is actually possible, to release your hidden capital, through debtor finance, sometimes called factoring or invoice finance. It’s a working capital finance tool that many business owners are unaware of. The below diagram illustrates how this simple process works and how you can use money from completed sales to finance new ones straight away rather than waiting for payment so that you can play catch up with existing clients.

A significant benefit of debtor finance is that the finance you receive is not tied to the value of your home, other real estate or any other asset. This means that the finance you are eligible for is dependent on the size of your business and the growth of your business, which also means that it grows with your business.

Often, it is the small business that struggles the most to access working capital finance from banks to grow, so, this guide offers a snapshot of how you can access capital locked in your business and ten potential ways you can use that capital to grow and improve your business.

 

What could you do with working capital that you had unlocked through invoice finance when you ha tove access your hidden capital

 

Here are some suggestions or what you could do and with the hidden capital you have unlocked

1. Buying more stock/inventory

2. Negotiate prompt payment discounts from suppliers

3. Increase sales and marketing budget

4. Employ for sales staff or more production staff

5. Purchase equipment or machinery to streamline your workflow

6. Expand into different product lines or services that compliment your current business and distribution channels

7. Expand into different regions, states or overseas

8. Take sales and marketing online

9. Undertake the research and development project you have thought about

10. Work ON your business not IN your business

 

Youy can find ouy more TODAY by phoning 0467 299 303 or Click Here.