SME'S and Working Capital Solutions

New Zealand’s economy benefits substantially from the thousands of SMEs, or small to medium enterprises, throughout the country. However, in times of tough cashflow these very same businesses are often overlooked by traditional finance companies and banks. Fortunately, Working Capital Solutions are here with their specialist invoice financing services, including factoring. Factoring has continued to go grow because it is supplied to smaller SMEs by non-bank independents like Working Capital Solutions, and it is a fact that without real estate security it is very difficult for a smaller SME to get meaningful cashflow finance from banks. Even real estate supported bank facilities have limited benefit as they do not grow in line with the growth of the business.

So why should SME’s use Working Capital Solutions for their invoice finance needs? Flexibility, speed, engagement and support are the key reasons. They are very flexible and will overfund clients if the need arises, and they are quick to approve facilities, and in their day to day responses – the need for cashflow is always urgent and Working Capital Solutions react accordingly. They engage deeply with their clients so that they understand their clients’ business and the issues that confront them – it’s much easier to help when you understand the issues. Lastly, they support their clients in tough times.

Many debt financing options for SMEs can be restrictive with prohibitive terms or finance rates, as those who have had to provide guarantees against their personal assets can attest, and invoice financing, or factoring, is an option that is growing exponentially worldwide, but is still in its infancy in New Zealand.  Factoring is a financial transaction whereby a business sells all or a portion of its accounts receivable (invoices) to a third party (called a factor) at a discount, in exchange for immediate money with which to finance continued business. Working Capital Solutions’ service focuses squarely on the smaller SMEs who benefit most from improved cash flow, using their main asset, unpaid invoices. They have the advantage of extensive experience and cutting edge software that provides real time transparency through a unique online client interface.

Although invoice financing has only recently become popular in New Zealand, it is the oldest and most prevalent form of business funding used throughout the world. The management team at Working Capital Solutions have had considerable experience in this area and are dedicated to the continual supply of their professional and dynamic invoice finance products to the support of smaller New Zealand companies. For more information go to http://www.workingcapital.co.nz .