What is Working Capital Finance?
Working Capital is defined as current assets less current liabilities, which is the amount of liquid assets (cash + debtors) less current expenses. Positive Working Capital means the cash at bank + receivables is greater than the current expenses (payables) of the business. Negative working capital balance means the business owes more than it has in cash available and what it will receive as income in the near future.
How Does It Work?
|Cash at Bank||$100,000|
In the above example, the business has positive Working Capital of $250,000 however the free cash position is only $100,000 as the majority of the Working Capital is locked in the receivables ledger. If there is a timing mismatch between when the debtors pay their invoices and when the creditors need to be paid, the business has a liquidity issue.
This short term liquidity crisis is one that many businesses face, particularly growth companies who need to spend upfront on marketing and opex but the income from that spend may not be received for as long as 90 days later.
A solution to this is
TIM Finance (TIM) offers a flexible funding solution which is like a cash flow loan, but without the high fixed interest charges and the usual minimum term.
Working Capital Finance Offers A Great Solution To:
For small and medium size businesses that need working capital to keep growing
Businesses with annual revenue of at least $1.0 million and who have at least 4 regular paying customers
For businesses that are coming out of a tough trading environment that need cash today to bridge the gap between invoicing customers and getting paid
Seasonal cash flow fluctuations
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How Does it Work?
After setting up a funding account, invoices are emailed or uploaded to us. TIM will then transfer up to 90% of the face value of the invoice in to your account within 24 hours.
When the invoice is paid in full by your debtor, your business will receive the remaining balance less a small discount fee charged.
No upfront fees.
How Much Money Can You Access?
You can draw down on funds at any time and for any amount (minimum: $100,000) provided you have at least sufficient outstanding invoices to provide for the amount you require.
The amount of funding you can access is directly correlated to your current receivables ledger, not your past sales and not your debt position of the business.
As your debtor/s pay their invoices as per your current payment terms, you are then able to repeat the process of re-drawing down the funds you require, over and over. The TIM “cash flow loan” or invoice finance as we like to call it, can be utilised as and when you need it and you can access up to $5.0 million for your business at any one time.
We offer flexible funding facilities ranging from $100,000 to $5.0 million.
Why Invoice Finance
Well over $60 billion is funded to Australian businesses each year using their Account Receivables ledger. The days of bank overdrafts linked to property security being the only option for funding are over, and invoice finance is becoming the preferred option for smart Australian SMEs.
No Hidden Fees
No upfront Application fees, no property security required and no hidden fees.
It’s 100% Flexible
We’ll provide the flexibility you require in order to manage your cash flows. No long lock-in contracts either.
Funding In 24 Hours
Don’t wait weeks or months for your money.
Benefits of This Offering
- Get funding within 24 hours of providing the required information
- Only pay for what you use when you use it
- No establishment fees
- No ongoing interest charges
- You make no repayments at all, as your debtor pays their invoice so you can then access the funds again (revolving facility)
- Easy, quick online funding process
- No property security required
- No long locked-in contracts
- The amount of funding is based on your sales not on your debt or ATO position of the business
Here’s why the experts choose TIM
This is Loren. She doesn’t work for us, but we’ve done a lot of business together. Loren is one of the many trusted business consultants who consistently recommend TIM to their clients. Watch the video below to find out why.
TIM Funding Process
5 simple steps to secure funding
Quick same-day setup
- No application or set-up fees
- No long lock-in contracts
- No property security required
Select your invoices and upload
- Choose only the invoices you want funded
- No fees as you add more debtors
- TIM checks the credit rating of your debtors and verifies each invoice
- Open and honest appraisals
Access up to 90% of your cash up front
- Get up to 90% of your invoices paid to you without any hold backs or fees
- Get your money within just 24 hours of approval
Access balance of cash
- The more you cash-flow with TIM, the lower the discount fee can become
- The balance due on your invoices are paid to you when your client pays their invoice, less a pre-agreed discount rate
- TIM is paid when you are paid and not before
Latest Case Studies
Make cash flow management easy by aligning your
accounting software to TIM.ex.
TIM’s accounting interface is quick to activate and helps to manage
money and pay suppliers.
Get Tomorrow’s Cash flow Today
Helping you find smarter ways to use your own cash and avoid the pitfalls of borrowing funds. TIM Finance is always ready to help in a fairer, more flexible and far more affordable manner than a traditional business loan. Contact a TIM expert today.
TIM Finance offers several different funding solutions (Services), one or more of which has a no-fee, no interest and no long lock in contract period, called the Fully Flexible funding option. Conditions, fees and charges apply to some of the Services provided, which may change or we may introduce new ones in the future. Full details for all funding options (Services) including any fees and charges which may apply, is available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider it’s appropriateness to these factors before acting on it. Read the funding agreements provided, for your selected product/service, including all the Terms and Conditions contained in agreements provided, before proceeding. *T&Cs: Minimum 12 month invoice funding contract with TIM Finance. Direct clients only, offer doesn’t apply to broker introduced clients. All standard credit terms and conditions apply including credit assessment. Not applicable to existing clients.