How to Fund Expansion in 2014

2014 like every year will have a vast number of business’s in a variety of industries looking to expand. To achieve this, every business needs to cash flow the growth. The degree of cash flow required will be dependent on the speed and size of the expansion.

One of the most effective methods of assisting a business to expand is through the use of Debtor Finance. The company’s existing debtor book to source funds quickly which enables growth and expansion to take place which in turn increases invoicing again the next month and so on.

In this article I will step through a variety of industries which currently benefit from Debtor Finance to fund their growth.

Franchises

As stated by the Franchise Council of Australia, franchise businesses make a significant contribution to Australia’s economy. In the current decade a big change in the franchise business has been witnessed, which will show further growth in specific types of franchises in 2014.

One example is the Fast food industry which is strong and growing component of the food and beverage sector and relies heavily on the franchise model.

With the expansion of franchises in 2013, companies growing their franchise businesses or investing in a franchise required extra funds. To meet the cash flow challenge, business owners have looked to commercial finance brokers to source debtor finance, to unlock the money they have in their debtor books to help grow the business.

Courier and Cargo Services:

Courier services have benefited the most from the rise of online shopping and ecommerce. This growth, as with all businesses has made them more vulnerable to cash flow issues as well. Debtor funding / factoring is one method of financing this expansion in freight.

Elderly Care Services:

The increasing demand for both products and services regarding aged care is growing simultaneously with the ageing population of Australia. Existing businesses in this space are likely to experience steady growth in 2014. Once again this will put strain on working capital reserves and is another strong case for leveraging debtors to assist in expansion.

Healthcare Sector:

Healthcare is one of the major concerns in any developed country with Australia being no exception. This industry is well established, multi faceted and constantly expanding. To take advantage of this ever expanding sector, health care providers such as rehab facilities, hospitals, aged care centres and fitness operators will all need capital to grow, develop and expand. The use of a variety of commercial finance options is a necessity.

Debtor Finance as a cash flow tool in Australia is not as well known or implemented as it is in the USA and UK. This however, is shifting as many businesses are becoming more aware of the benefits of this type of finance.

All the sectors of the economy mentioned above can benefit by using a commercial finance broker like Commercial Point Finance to hunt down the best deals on a wide range of commercial finance options which are available to them at very competitive rates. Debtor Financeis a business finance secret that can act as a saviour for many start-ups and small businesses. Contact us now to discuss how we can assist you to grow.