Avoiding a cash flow nightmare this Christmas

Tuesday 27 November 2018, 9:07PM
By Beckie Wright

Plan ahead to navigate the silly season with money in the bank.

15 Nov. 18;  Christmas can be a huge source of anxiety for small businesses as factors such as holidays, the late payment of invoices and additional outgoings combine to impact cash flow.

Invoice Finance specialists Apricity Finance this month put together seven considerations to help small businesses navigate the Christmas period and avoid facing a cash flow crisis in the new year.

CEO Linden Toll said the Christmas period can be a difficult one for many businesses, however as with anything in business, planning and early preparation are key to the financial health.

“If your business supplies to big business or government agencies, you will often wait 30 or 60 days to have your invoices paid.  Add to that having offices shut down for weeks and many people away for the school holidays, the payments you are relying upon may be pushed out even further.  However, there are a number of strategies business owners can implement to aid cash flow and avoid taking on additional debt at this time of year,” he said.

Mr Toll said it was a good idea for businesses to talk with the their customers about accepting invoices earlier in the month. 

“If you know what you would usually bill in the month, it may be worth talking to your client about putting the invoice in at the beginning rather than end of the month in December and January.  If your business is experiencing cash flow stress, invoice finance may be another solution.  Invoice finance allows businesses to leverage their own assets (their accounts receivables) to create in immediate influx of cash and negate the need for loans or overdrafts over the Christmas period.”

“We recently conducted a survey of finance brokers and results showed that 75% of the brokers surveyed would recommend invoice finance first as a solution to alleviate cash flow issues” Mr Toll said.

“Invoice finance can provide access to the funds from your invoices straight away and smooth out cash flow over the Christmas period. “Mr Toll said, “Any business considering invoice finance can call our team to find out if our solution will work for their business.”

About Apricity Finance

Apricity Finance We specialise in a single product – known as invoice finance (or debtor finance). Our solution allows approved businesses to have the invoices to their high credit quality customers paid faster. This reduces frustrating wait times and provides cash flow certainty.

We help small to medium businesses grow by reducing their most common pain point – cash flow stress.

Founded by a team of experienced investment management and finance professionals, our first office opened in New South Wales’ Southern Highlands in 2013. In 2016, we opened offices in Brisbane, Melbourne and Auckland.

Media Contact

Chrissy Toll

+61 414 621163