Our client came to us via a proactive bookkeeper, who identified well in advance of the BAS due date that one of her client’s was going to have problems with finding sufficient cash to pay the ATO on the due date.
On top of this, the business was offering 6% early settlement discounts to customers if invoices were paid within 14 days from invoice date instead of the usual 30 days from month end.
The bookkeeper contacted TIM after reading our blog post on early payments discounts to help find a solution for her client.
After arranging a call and then a meeting with the bookkeeper and her client, a flexible funding solution was put into place with TIM which:
- Enabled the business to utilise the cash tied up in the business’ receivable ledger, by immediately accessing 80% of the value of current outstanding invoices to pay the ATO; and then
- Going forward TIM implemented a flexible invoice finance solution which enable the client to access funds within 24 hours of invoices being issued, at significantly lower funding costs than the 6% discount offered for 14-day payment terms.
The business now has regular cash flow, and is able to take on larger contracts and is growing quicker than ever before, as a result of TIM’s low cost funding solution at rates far less than the early payment discounts offered to customers previously. All this thanks to a proactive bookkeeper.
A good proactive bookkeeper is a very smart investment for any size business.
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