As a business owner, there are many events that are outside of your control which can have a serious effect on your business activities, profits and cashflow. These events can include such things as; unexpected weather events, poor economic conditions, change in government policy, key member of your staff getting sick, your computers getting a virus or your clients delaying purchase decisions because they are on holidays.
These types of events can often result in you injecting your own personal funds or spending precious time solving the problem so your business stays alive and continues to prosper. In these times, sometimes all you need is access to cash to either pay for something or pay a service provider to fix the problem. Most of the time these problems require cash quickly and you don’t have the time to go through the finance process with your bank making an appointment, filling in forms and waiting for approval and settlement.
Every business should have some form of business overdraft which will give you a limit of cash you can draw down on if and when you need it. All major business banks in Australia offer overdrafts. The problem is the process can take up to a month and you will need to put up real estate as security for the overdraft as well as provide your end of year financials.
Luckily for Australian small business owners there are a few new finance companies that can provide you with a cash injection or line of credit without the need for real estate security. These new finance products can be set up so you only draw down the cash when you need it and only pay interest on the cash you drawdown.
If you would like to see if your business qualifies for a Proxy Finance Line of Credit facility that will provide a fast cash injection when you need it click here.