In today’s global business economy, lenders need to be able to offer flexible funding solutions at scale that can move across international borders. Even more so, businesses are looking for flexible finance solutions that help them thrive in a changing business environment. The old model of invoice finance can be inflexible and restrictive when compared with the invoice finance solutions available today. Now, more than ever, businesses are looking for a solution that enables them to invoice, receive payments and then use those funds as they see fit.
The key to understanding invoice finance is realising that it’s not a loan, but an advance on future business profits. However, not all invoice finance lenders provide streamlined, scalable cashflow solutions for their clients.
What many businesses don’t realise is that unpaid invoices are their greatest hidden asset. On the other hand, one thing that all businesses are familiar with is that late payments with many businesses facing lengthy payment times with waiting periods as long as 90 to 120 days. That’s a long period of time to be out of pocket and it can lead to missed opportunities to grow, innovate and reinvest.
Businesses are looking for invoice finance solutions that enable them to invoice faster, with ease and as often as required. With invoice finance, invoices owed becomes an asset that allows businesses to access liquidity when they need it most without having to wait, putting them in prime position to thrive in their market segment.
Here we look at how alternative lenders like TP24 are bringing fully digital, cash-flow solutions to businesses in Australia and across the globe.
Whilst traditional invoice financing is still around, invoice finance has evolved to meet the changing needs of SMEs in today’s digital market. Invoice finance lenders like TP24 are offering innovative cash flow solutions that provide new avenues for businesses to invoice, receive payment and grow on a global scale.
In a global business economy, gone are the days when lenders can only provide access to domestic invoices, streamlined international invoice finance is a must. Many businesses face cash flow challenge roadblocks in their early years.
At the beginning of their business venture, an internationally renowned business – Global 345 – faced significant cash flow barriers. Global 345 had tried invoice finance before however, with the majority of their clients overseas many lenders either were unable to fund international invoices or insisted on collecting invoices. The promising company “hit a wall” that was until they discovered TP24.
After many attempts to secure flexible funding, the business found its cashflow stuck in an endless loop of high fees bound by rigid terms. This led the company founders, to seek out an alternative line of credit to back the now globally recognised business.
“The world is global now. I can’t believe people just trade within their own country, particularly in Australia. I just kept searching and soon after that, I just came across a broker that fortuitously was aware of your TP24 and the rest is history.”
– Co-Founder of Global 345
Many alternative lenders stipulate invoice collection as a requirement of the funding relationship. Building partnerships is the key factor to business success and for many business owners, having a third party collecting invoices owed can be invasive and impact client relationships. Businesses generally feel more comfortable maintaining client relationships from their side rather than handing them over to a third party.
TP24’s key point of difference is allowing businesses to manage the business partnerships and invoice collections independently. This way businesses maintain their independence and integrity where important client relationships are concerned.
Keep your bank account
Many lenders require businesses to change bank accounts when entering into a lending relationship. For businesses with hundreds of different supplier accounts, contacting every single client to update new information is nothing but a headache. TP24 allows businesses to keep their bank accounts making the invoice finance process a whole lot easier.
Many lenders require detailed information and accounts as to where your funds have been distributed. This adds an additional level of admin to a businesses already huge workload. Alternative lenders like TP24, recognise the importance of giving investors the freedom to do business their way while maintaining a relationship of integrity between the business and the lender.
Investing in working capital injections smooths out the cash flow cycle allowing businesses to achieve top level goals and objectives instead of getting stuck in a cash flow loop of continuous high fees, rigid terms common amongst banks and large finance lenders.
Businesses of today want scalable and flexible finance solutions that don’t create barriers to business growth and operations. Paired with the growing awareness that invoices are a businesses greatest hidden assets, alternative lenders like TP24 with scalable, flexible and fully digital solutions are rapidly becoming the go-to cash flow solution for Aussie SMEs.