Accounting & Finance
How Effective Receivable Finance Helps To Grow Your Business
Are you a business owner looking for better ways to fund your business and successfully manage your supply chain?
Running a supply chain company successfully requires funds. Without a line of credit, it becomes difficult for a company to stay in the competition and survive.
As in the case of most supply chains, you need to pay upfront so that you get all the materials and resources required for running your business. But when you have a large amount of outstanding invoices, it becomes difficult to make an upfront payment and pay your suppliers.
Octet is an Australian company that offers a solution to this problem. Octet is a revolutionary and universal supply chain and banking platform. You can manage all your receivables using the Octet supply chain finance platform and get the required cash to manage your business and grow.
What is Receivables Finance?
Receivables Finance is a way of accessing cash against outstanding invoices and money owned by various customers as collateral security during a financial agreement. It is a type of asset financing arrangement where a company uses its invoices to get the funding it needs to run, and grow.
Receivable Finance – A Popular Choice for Manufacturers, Distributors, Transport and Labour Hire Industries
Fast Cash: The main reason for the popularity of receivable finance option for these industries is the need to raise cash upfront. Your company will need fast cash to buy raw materials so that production can go on and you can have enough stock to meet rising demand. So, when your customers are slow to pay, you need to raise cash by some other means. Through receivables finance, you can raise the required cash quickly and continue growing without any interruption.
Free your Working Capital: If you are running a retail business, you would know that the majority of your working capital is tied up in inventory. Instead of your working capital sitting idle, through receivable finance, you can easily release some of the working capital and use that money for growing your business.
No Debt Incurred: Receivable finance is not a loan and therefore you are not incurring any debt. Through receivable finance, you can keep your balance sheet intact and even obtain other means of finance without any complications.
In order to raise cash, some business owners sell their homes. The problem with this type of fund raising method is that you may end losing not just the ownership of your company, but your family home.
With account receivable finance, you don’t need to take a loan out against your house and risk losing your home. You can get capital without compromising the ownership of your home.
Save Time: Receivable finance is the fastest way to raise cash that is required for running your business when you are short of working capital. If you are planning to collect money from your customers, it will take a lot of time and effort. But, with the help of Octet supply chain finance platform, you can manage all your funds. Save time and relieve yourself from the unwanted stress involved in collecting money and managing funds.
All companies regardless of the size, require credit to manage their business and day to day activities. If your company needs quick money, then, the best option will be receivable finance. Octet helps manage all your receivable finance through a digital wallet.
The supply chain finance platform gives you access to foreign exchange rates and helps you avoid endless fees for international money transfers. Pool receivables finance with other funding methods and give yourself better buying power.