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.

For example:

Cash at Bank $100,000
Receivables Ledger $450,000
Payables Ledger $300,000
Working Capital $250,000

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 Invoice Finance.

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.

Quick Online Application

It will only take a few seconds & will not affect your credit rating.

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 per month) 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.

A smart alternative is Invoice Finance or Invoice Discounting.

TIM Finance (TIM) offers a flexible funding solution which injects immediate cash into the business, but without any repayments by the business to the financiers not the high fixed interest charges and loan term that comes with a business loan.

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.