Business Loans. Prevention as much as Solution

Finance for many businesses is perceived primarily as a burden. But an essential onus that must be taken on as a solution to a financial or expenditure problem. Loans are seen as a cure to a business own debt problems and thoughts of taking on the burden of debt can be the worst fears for many business operators. Finance can be seen as a last resort.

But in reality, that is not always the case and in fact, business finance can be equally a preventative measure as a solution to an existing problem. Business finance is the lifeblood that keeps many businesses and entire industries and economies ticking along. Finance can be utilised for highly valued and important prevention purposes as much as a cure for ills or problems. Your business doesn’t have to be ‘in trouble’ or in dire straits to consider taking on finance.

The actions by the Federal Government during the pandemic can be perceived as an example of both sides of the story. At the start of the COVID-19 crisis, they quickly moved to implement a massive stimulus package which placed a huge debt on the country’s coffers but prevented significant failures and fallout for individuals and businesses. Preventative measure or solution? Both really and no doubt opinion will be divided on that example – no discussion will be entered into!

At Jade Finance we focus on assisting businesses with both curative and preventative finance options. Providing a full range of finance facilities and working with individual operators to identify both where finance can be a solution and where it can work as a preventative measure. We work to help businesses achieve their financial objectives through a wide range of lending options.

What’s holding you back from realising the true potential of your business? From delivering the output and performance targets that you feel you should be hitting?

To meet key objectives, business owners need to know what finance options are available to their business and have easy access to the loan products which are specifically designed to suit specific purposes.

Prevent Credit Issues

There are two sides to credit. Most businesses provide credit to their customers by waiting a certain time for invoices to be paid for goods and services. But the business also needs credit from its suppliers in meeting their bills. If the balance isn’t right, it can lead to credit issues. If a business fails repeatedly to pay its bills on time, it can lead to the supplier making a negative report on the business to credit agencies which can lead to a bad credit rating. A bad credit rating can be extremely damaging to a business in many respects.

Taking preventative action through seeking appropriate finance can avert a potentially bad credit situation from occurring. If you are in an industry sector where your customers typically do not pay invoices according to a payment schedule that meets your needs, then Jade Finance has a finance product that may suit your requirements – Debtor Invoice Funding.

Debtor Invoice Funding is a specialist finance facility where we set up an arrangement for you with one of our lenders to take on the burden of your outstanding customer invoices. The lender pays you an agreed percentage of the value of the invoice at the time the invoice is issued to the customer. The customer pays the lender in due course and when the bill is finalised, the lender pays you the balance.

So for a small fee and the interest charged on the monies outstanding, your business receives timely payment. Payment allows you to meet your commitments and prevent your business from getting into credit problems.

Preserve Cash Resources

When it comes to acquiring machinery, cars, vehicles and equipment, a business can use its available cash to purchase the goods or take on debt. Is the loan a debt burden or is it a preventative measure? By taking on a loan, especially at the current cheap commercial interest rates, a truck loan, motor vehicle finance or equipment finance protects the business cash position. Cash may be better utilised in other ways within the business or may be needed to make wages and other essential payments.

Jade Finance offers the full range of commercial finance facilities – Chattel Mortgage, Equipment Loans, Rental and Car Loans for business equipment and vehicle purchases and for refinancing purposes. Solutions that can preserve existing cash reserves.

Avert Cash Flow Shortfalls

Cash flow shortfalls are a very common occurrence for all sized business. A dip in sales coinciding with the arrival of unexpected or large expenses can quickly and easily impact a business cash flow situation. Cash flow shortages can then flow on to the business not being able to meet its commitments to suppliers and utility providers which then has the potential for creating a credit rating problem and long-term negative effects.

Jade Finance offers a number of preventative measures to address cash flow issues. Our Business Overdraft facility is a very popular option for many businesses. An overdraft can be structured in a flexible, cost-effective format to provide the business with an ongoing line of credit to prevent cash and credit problems. While bank overdrafts are commonly sourced by businesses themselves, where this is not an option, Jade has access to non-bank lender overdrafts.

Another extremely useful finance options are our Insurance Premium Funding. Insurance premiums on equipment, indemnity and other policies can be large and usually due in one annual payment. Finding that money in one hit at a time can often be a challenge. Our IPF offers the opportunity to spread those payments into quarterly or 6 monthly instalments. Thus preventing the strain on the cash flow of paying it annually.

Avert Productivity and Output Dips

Ageing machinery or equipment can represent a potentially serious problem for business. If it becomes unreliable or costly or no longer has the capacity to meet the demands of your customers or your market, it may be more of a liability than an asset.

Taking on a loan to invest in new machinery and equipment can be an astute preventative action. Upgraded, new equipment can boost or at least maintain the output and productivity you expect and prevent downturns that may affect profitability and viability.

Avoid Missing Opportunities

Finance has a significant role to play in ensuring businesses can capture opportunities as they are presented and prevent problems and issues occurring across many areas of their operations. Our business loan broker consultants are available to work with you to source and structure finance to prevent cash flow and other issues causing problems for your business.

To discuss your preventative finance options, contact Jade Finance Call 1300 000 008