Covering cash shortfalls
Cashflow Sessions: Finding sources of funding
Westpac Financial Education chief Sinclair Taylor takes you through potential sources of funding for your small business, helping you make more confident business decisions while keeping an eye on your bottom line.
Updated 10 May 2010
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Your cash flow needs should be met from the cash coming into the business, topped up when you need to with short term credit. Make sure you’re borrowing for as little time as possible, and only when you need to.
To keep costs down, you may be able to negotiate trade credit from your suppliers, or take advantage of the interest free period on your credit card.
I want to convert unpaid invoices into cash flow
If you have money to cover the shortfall, but your creditors are slow in paying up, we can help you turn up to 80% of your unpaid invoices into working capital.
I need to make a large one off payment
If you need to make a large one off payment, say to buy stock or pay your tax bill, we have a number of options, depending on how quickly you can repay the money.
I’m an exporter and need to cover the lag before I receive payment
As an exporter you may need short term bank finance to cover the lag between manufacturing and shipping goods, and receiving payment.
I need to smooth out cash flow fluctuations
If your business is seasonal and some months are quieter than others, you’ll may need short term finance to keep things moving.
