Brett Monaghan dreamed of returning to Australia and starting his own organic food business. A fashion photographer in his previous career, Brett grew bored of chasing the latest fashionistas from Milan to Madrid, so he returned home to start his own manufacturing and wholesale business.
We see countless advancements in technology that increases our productivity and saves us time, and fintechs like Waddle are driving innovation in the finance space, offering time-saving modern invoice finance solutions for accountants, bookkeepers, finance brokers and their clients. The time saved over the week can be significant - typically up to 1 day! Usually, time saved is re-invested into the business, working with new clients and tending to other matters, however, you could, in theory, have a day off to do whatever you like. Golf anyone?
We spoke with Bernadine Geary, Director, Cashflow Finance at Fundamental Business Finance, who provided some insights to the shifting perception of debtor finance in Australia and in the U.K.
Bernadine is a qualified chartered accountant, a graduate and Associate of the Institute of Credit Management. She has a wealth of experience in the trade & debtor finance industry and has worked both in Australia and in the UK. She has also established her own successful finance brokerage house and is regarded as an industry leader.
I started life as a Chartered Accountant and went into credit management in the UK where I studied with the Institute of Credit Management in London. I discovered trade finance whilst I was working with a company in London, where I attached a purchase order and invoice finance product for them. Debtor finance just made sense to me as I could see how this helped my clients. Credit management is all about ensuring that the invoices a business raises for goods or services provided are paid and done so in a timely manner. Debtor finance goes hand in hand with these principles by accelerating the cash flow held in unpaid invoices. The life of a business's trade cycle and being able to assist in managing this had motivated me to start my own trade and debtor finance business in the UK.
The perception of debtor finance in Australia and the UK differed greatly 10-15 years ago. The perception of using debtor finance in London was seen as an everyday cash flow management tool, yet in Australia, debtor finance was perceived as a lender of last resort and just "too hard" to do. Over the years however, particularly over the last five years, with the evolution of information technology and new lenders in the FinTech space such as Waddle, businesses are starting to realise that they can get access to working capital in a fast and efficient manner- more often than not easier than traditional lending such as overdrafts and commercial bills. There’s been a shift in how debtor finance is perceived, as now it’s seen as the smart way to improve a business's cash flow.
Topics: debtor finance
Slow paying debtors, the misery of every business owner at some point. Payment terms are not being met, receivables blow out and the money that could so usefully be put back in the business is just sitting tickling their fancy. Torture.
Topping the list for most stressful things of running a business has to be waiting for your invoices to be paid.
Especially when customers don’t pay on time.
Invoice Discounting and Invoice Finance are terms often switched between lenders when marketing their services.
So what's the difference?
Big corporates have been using invoice finance for decades. Modern SMEs can now revel in its benefits.
[eckosc_status_message title="SNAPSHOT" icon="fa-bolt" type="info" message="Invoice Finance is a widely accepted business financing tool that can be used if you invoice customers on credit terms. You can access funding from invoices today, rather than waiting 30,60 or 90 days for payments."]