COVID-19 knocked many businesses for six, bringing uncertainty and cashflow issues as the fallout from the pandemic struck. As business recovers, cashflow is still an issue for many. EBM Finance can help find the right finance solution to help re-start the flow.
Maintain your business cash flow with the right finance solution
Cashflow is essential to any business. Without the funds in place to pay suppliers, staff and rent, the business is in a precarious situation and failure is a very real possibility. An otherwise financially healthy business can collapse simply because it doesn’t have the cash it needs when it needs it.
“COVID-19 has seen many businesses that were once liquid, face the challenges of diminished cashflow,” said EBM Finance Associate Elliott Watkins.
“Government stimulus was invaluable for keeping doors open and people in work, but business owners still have to contend with cashflow issues – this is where the right finance solution can help.”
“For businesses which are solvent and have good prospects for profitability, options are available to inject much-needed money into the business through specialised business loans.”
Loan options include:
Also known as debtor finance, this facility provides the business with up to 80% of the value of each invoice it raises without having to wait for the client to pay. The funds are generally made available to the business within 24 hours of the invoice being generated. When the client pays the invoice, the funds go to the financer instead of the business and the business receives the 20% balance of the invoice amount less interest and fees. Loans are available from $5,000 to $2 million and no property security is required (the unpaid invoices are used as security), with flexible payback periods of 30 to 90 days.
This facility provides funds for the business to pay local and international suppliers and gives the business 30, 60 or 90 days to repay the loan, during which time no repayments need to be made but the full amount must be paid as a lump sum at the end of the loan period. An option for importers purchasing goods from overseas for re-sale, or businesses purchasing stock or goods from local suppliers for re-sale, trade finance effectively gives the borrower 30, 60 or 90 days to make the sale and collect the money before it needs to pay for the goods or stock. Loans are available from $150,000 to $2 million, with no security required. Cash is injected into the business within one to two weeks and the payback period is flexible.
Short-term business loans
A loan arrangement that sees a lender provide the funds to the business based on the lender’s analysis of the business’ bank statements to determine how much the business can afford to borrow. Loans are available from $5,000 to $250,000. The business repays the loan within the specified loan period (three to nine months) at the agreed rate of interest. Funds are available to the business within two to three business days and no property or business assets need to be provided as security.
“By tapping the available finance options, owners can regain confidence in their business’ cashflow. With the security of knowing the money is available to keep things running smoothly, you can concentrate on other aspects of your business,” Elliott said.
Our established relationships with lenders means EBM Finance can help ABN holders secure the finance they need on the best terms.
EBM Finance Pty Ltd acts as a credit representative of IFBA Pty Ltd under Australian Credit Licence 391682.