Working Capital Funding - Receivables

Working Capital Funding - Receivables

BSI can provide a solution to your working capital needs - Minimum facility $200,000

Receivables Finance, otherwise known as Debtor Finance or Invoice Discounting, allows a business to advance funds against debts owed to them for goods supplied on credit. Debtors and stock will often be the largest assets owned by a business and they tie up significant funds. Receivables Finance allows you to use these business assets to fund your business.

Many will fund their business with an overdraft that is secured by personal property. Receivables Finance is a great way to remove your personal assets from the business and use those assets for building wealth or other personal needs. Advancing your debts allows you to create the cash flow you need to pay your suppliers without the need for an overdraft. The facility grows as your business grows so the more invoices you raise, the more cash you can advance.

Benefits of this type of finance include:

• Generally, not secured by real estate. Keep the home safe and utilize the equity for personal wealth creation or other personal use.
• Take advantage of supplier discounts. Many suppliers offer discounts of 3% or more for payment within 7 Days. This discount will generally more than offset the cost of finance.
• Avoid offering discounts to customers. Customers may take a significant discount, eg 3% on payments for 7 days. Receivables Finance will generally be cheaper.
• Receivables Finance can be used as a finance tool in acquiring another business.
• Available funding from the Facility is not capped by a fixed asset. Unlike an overdraft limit that is capped by the Bank according to the value of the property taken as security, receivables finance is more flexible and allows for increased funding as sales grow.

Transacting with BSI's working capital partner is very easy with an online business centre. All information is provided to our partner via the web site with 24/7 access to detailed reports online. BSI can provide a cost efficient finance facility in an easy to manage and user friendly environment.