how fifo capital helps business with cash flow problems
Post on 10-Aug-2015
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How Fifo Capital helps businesses with cash
flow problems
Most businesses encounter cash flow problems at some point of operation…
• 51% of business start ups do not survive beyond four years of operation.
• 41% indicate that inadequate cash flow or high cash use is a major driving factor towards business failure.
Common causes of cash flow problems
Increased expenses
Reduced Sales
Activity
Creditors requiring
earlier payment
Replacing
Aging
Equipment
Debtors delaying
payments and
customer failures
Many businesses have limited access to funding…
• Poor relationship with bank• Inability to borrow
additional funds• Inability to raise equity• No real estate to use as
security• Restricted access to
alternative sources of finance
Cash flow financing
Also known as:
• Invoice Discounting
• Factoring
• Invoice Finance
• Debtor Finance
• Receivables Funding
How debtor finance works…
1. Client provides good or service to their customers and invoices them
2. Invoice details are sent to the funder
3. Funder makes available approx. 80% of the value of invoice(s)
4. Customer pays invoice(s) to funder
5. Funder then repays the balance of the money less charges
1. Sells product
2. Copy invoice
3. Advance funds
4. Payment to funder
5. Surplus funds
Fifo Capital Client Customer
Benefits to the client
• Converts debtors to cash• Immediate cash inflow No
long-term contracts• No real estate security
required• Protection against bad debts• Keeps pace with growth• Greater buying power
• Ability to add new product lines
• Negates the need to offer customer discounts & rebates
Fifo Capital’s offering
• 5 minutes online application• Decisions within 24 hours • Advances are usually around 80% of the invoice value incl. GST• Advances amounts start from $10,000 and up to $1 million across
single or multiple debtors• A single point of contact ensuring accessibility at all times• Can mitigate client’s ATO liabilities• Can fund start-up businesses without trading history
Fifo Capital’s offering
• NO locked in, long-term agreements
• NO real estate security requirement
• NO minimum time in business requirements
• NO set up fees, exit penalties or hidden charges
• NO undisclosed terms
Get in touch
Justin HydeDirectorFIFO Capital Greater WA
Phone: 1300 FIFOWA (1300 343692)Fax: (08) 9463 6360info@fifocapitalgwa.com.auhttp://fifocapitalgwa.com.au
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