It’s good to be informed of your options. Alternative finance can offer some smart solutions for businesses who need access to cash. We take a look at invoice finance and short term business loans.

Finance options for cash flow challenges

Quick takeaways if you’re in a hurry:

Fifo Capital Business Partners have a great deal of experience solving cash flow challenges
Invoice finance is a short term solution to give you fast access to cash
– A short term business loan allows you to define the period of your lending and your repayment frequency, putting you in control of your options.

Read on: Finance options for cash flow challenges

(estimated reading time: 5 minutes)

You may not think that your business needs an alternative finance solution, but that doesn’t mean you should ignore the options.

Alternative finance offers businesses the opportunity to grow or maintain funding when the bank decides to hold or reduce theirs. And with fluctuations in industry ratings or asset value; you’d be surprised how often that can happen.

It’s also good to have alternatives available when your business experiences an opportunity for growth that more traditional lenders may not be able to fund. And as all businesses experience unexpected challenges you might like to be prepared for these too.

Here’s some more detail on ways that Fifo Capital could help your business.

In the beginning

If you’re interested in funding solutions from Fifo Capital, the first step is to contact a Fifo Capital Business Partner. Our Business Partners have years of experience helping businesses to get through cash flow challenges and manage their business into a better position for the future.

Even if you don’t know what kind of cash flow challenges you might face, a Fifo Capital Business Partner can help you. They’ve worked with enough businesses to be able to give you some pointers about where risks might lie. And once they understand why you might need cash, they can suggest some products that might help.

Invoice Finance

If your business invoices customers then you might like to find out more about invoice finance. If you’ve never heard of it before you might think it sounds complicated, but invoice finance is actually a simple way of accessing your own cash to fund your needs.

If you find your business is short of cash, you can sell a single invoice (or more than one) to Fifo Capital. Fifo Capital then advances you up to 90 percent of the value of the invoice, giving you access to the cash you need now. When your customer pays the invoice, Fifo Capital deducts a fee and pays the remainder back to you.

Invoice finance is a flexible short term funding option because it only lasts as long as the invoice is unpaid. That means you don’t have to enter into a long relationship that might impact other finance agreements.

If you’re not sure about your security situation and you think your current lending might impede your ability to access more funds, invoice finance could be the solution you need. Usually the only security required is the customer who is going to pay the invoice, so it’s a great way to get around existing commitments.

Invoice finance provides a helping hand if your business is struggling with long payment terms; finds itself with unexpected costs to deal with that require immediate access to cash; or identifies the opportunity to grow but doesn’t have the funds to make it a reality.

Short Term Business Loans

If your funding requires a slightly longer term solution or you would like to borrow funds for a set period of time, you might consider a short term business loan. A short term business loan is flexible to your needs and allows you to access the funding you require and manage repayment options to suit your set up.

One of the key advantages of a Fifo Capital short term business loan is that Fifo Capital Business Partners are experts at finding ways to secure funding without impacting existing banking arrangements. That means you can be confident in your ability to access funds in addition to your existing borrowing.

Short term business loans can help deal with an unexpected cost. This could include an unexpected growth opportunity; funding one-off business costs or dealing with the cost of new infrastructure or equipment; and dealing with cash flow shortages caused by tight margins.

Working with Fifo Capital

You may not need to access cash today, but you might foresee a situation in the future where cash could be in short supply. If this is the case your Fifo Capital Business Partner can create a standby facility for your business. This means that funding will be set up for you to access when it’s needed. You won’t have to pay a thing until then.

Fifo Capital Business Partners create funding solutions that work in the short term, and they work with businesses to help them to make their business position sustainable and profitable for the long term.

Business Partners also specialise in being able to work with third parties such as banks, accountants and financial advisers to ensure that everyone works towards creating the best solution possible for the business.

Invoice Finance, Cashflow Solutions and Business Loans

Fifo Capital are experts in cashflow solutions for small to medium business. Find out more about invoice finance and our fast business loans here: