how fifo capital helps business with cash flow problems

10
How Fifo Capital helps businesses with cash flow problems

Upload: justin-hyde

Post on 10-Aug-2015

43 views

Category:

Economy & Finance


0 download

TRANSCRIPT

Page 1: How Fifo Capital helps business with cash flow problems

How Fifo Capital helps businesses with cash

flow problems

Page 2: How Fifo Capital helps business 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.

Page 3: How Fifo Capital helps business with cash flow problems

Common causes of cash flow problems

Increased expenses

Reduced Sales

Activity

Creditors requiring

earlier payment

Replacing

Aging

Equipment

Debtors delaying

payments and

customer failures

Page 4: How Fifo Capital helps business with cash flow problems

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

Page 5: How Fifo Capital helps business with cash flow problems

Cash flow financing

Also known as:

• Invoice Discounting

• Factoring

• Invoice Finance

• Debtor Finance

• Receivables Funding

Page 6: How Fifo Capital helps business with cash flow problems

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

Page 7: How Fifo Capital helps business with cash flow problems

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

Page 8: How Fifo Capital helps business with cash flow problems

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

Page 9: How Fifo Capital helps business with cash flow problems

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

Page 10: How Fifo Capital helps business with cash flow problems

Get in touch

Justin HydeDirectorFIFO Capital Greater WA

Phone: 1300 FIFOWA (1300 343692)Fax: (08) 9463 [email protected]://fifocapitalgwa.com.au