With floods impacting eastern Australia, the COVID-19 vaccine roll-out entering the crucial stage 1B and a raft of issues in Federal Parliament dominating the news headlines, the story about a container ship blocking the Suez Canal has taken a few days to reach the front pages of the national mastheads.
In case you missed it, a large container ship is stuck in the Suez Canal, actually blocking the entire width of the waterway, akin to a beach whale. Over 200 ships are currently backed up and authorities have closed the access to more ships entering. Reports are that it could be stuck for weeks as specialist crews from several countries are brought in to work out a way to get it back on course and out of the Canal.
If you need to check your geography for where the Suez Canal is located, you’re excused. It’s in the middle-east, in Egypt and is a man-made waterway which connects the Mediterranean Sea with the Red Sea and was constructed in the 1860s, opening in 1869.
So why should businesses in Australia be interested or concerned about this? What does it mean? How could this impact your business?
Well this is the major access for oil, grain and container ships to and from ports in Europe. That means it is a major global trade route and Australia is a major global trade nation. Many Australian businesses rely on shipping trade with Europe which travel via this route.
At Jade Finance, we’re considering what this may mean for our customers in terms of finance. For Aussie businesses think of your supply chains and then think possible cash flow issues. If your products are en-route to markets via this trade channel, there could be delays in getting those goods to your customers and potentially delays in you getting paid.
In the other direction of the supply chain, think of what you are waiting on being delivered from that part of the world. For those waiting on machinery, components, stock or goods and materials essential to their production, this could mean delays in your output and in you receiving payment from your customers.
While we’ve singled out this event, it is just one example of how events well outside your control, even on the other side of the world, can impact your business cash flow. You don’t need a ship to block a major trade route for your business to experience cash flow strain. Cash flow can be interrupted and disrupted for many varied reasons. The resources and agricultural sector are well aware of how international market pricing and seasonal events flow through to affecting their flow of funds.
The good news is that Jade Finance offers a range of business finance solutions to address a range of cash flow issues. Cost-effective and individually tailored finance arrangements structured to ease cash flow pressures for many types of business operations.
Cash Flow Solutions
At Jade we don’t adopt a one-size-fits-all approach to cash flow solutions. We work with our customers to identify the need and then structure a solution to meet that need. Identifying the specific source of the issue can result in achieving s finance product to suit that specific requirement. Our cash flow finance products include solutions for both short term and longer term prospects.
Business Overdraft
Most businesses are well aware of what an overdraft involves and many trade with an ongoing overdraft or line of credit through the bank. But what many may not be aware of is that banks are not the only providers of overdraft facilities. At Jade, we source business overdrafts for our customers through several of our non-bank lenders.
The concept works in a similar way to a traditional bank overdraft, it’s just that the line of credit is provided through a non-bank finance company. An overdraft can be arranged over ranging timeframes and is suitable for both short-term cash flow issues and as an ongoing arrangements. Our interest rates for business overdrafts are highly competitive and our consultants negotiate suitable terms for individual customers.
Debtor Invoice Finance
One of the most common causes of cash flow crises for business is when their customers don’t pay for goods and services as provided in a timely fashion. You’re relying on those funds to pay wages, acquire supplies for further production, pay your own suppliers and when the money doesn’t flow in on time, problems can arise.
If this type of situation continues over an extended period or is constantly recurring, it can lead to the business not only have a cash flow crisis but facing general credit issues. Some suppliers such as utilities, may report late payers and non-payers to credit reporting agencies. Such reports can impact a business’ credit rating and their attempts to source future loans and finance.
If your cash flow problems stem from your customers not paying you on time, talk to us about Debtor Invoice Finance. This is arranged through our non-bank lenders and allows you to receive an agreed percentage of the invoice value through the lender at the time of invoicing. The balance is paid when the lender receives full payment from your supplier.
Interest is charged on monies awaiting payment and small charges apply but this can be a great solution for many business operators. Review the full details on our web page or call for a quote.
Secured and Unsecured Business Loans
In addition to the above more specific solutions, we also offer general business loans, both secured and unsecured, to cover a range of expenditure requirements. The type of expenses that perhaps cannot be made without placing undue pressure on cash flow. Discuss your requirements with one of our consultants and we can provide our advice on which solution would best suit your need.
Eligible Businesses
Jade Finance works with all types of businesses, from the smallest, solo operator set-up to large corporations. Our services are available across all industries and all sectors, so if you’re facing cash flow issues, reach out for a solution and don’t get stuck in your own cash flow canal
To discuss cash flow solutions, contact Jade Finance Call 1300 000 008
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.
