Whether you are buying/ordering goods from a supplier or obtaining their services, a purchase order identifies exactly what has been ordered, the total amount, delivery expectations, and payment terms.  Buyers create the PO and send them to vendors. This advises the vendor to accept the PO and send an invoice back to the buyer. PO and the invoice usually contain similar details. The invoice generally references the PO number, along with an invoice number, to confirm that both documents contain the same information and correspond to each other.    When to use the purchase order ..read more

An LC serves as a bank guarantee or financial security required for a transaction to take place between a buyer and seller of goods across borders. A letter of credit (LC) or letter of undertaking is a payment mechanism mostly for international trade, where a letter issued by a bank to another bank (especially one in a different country) serves as a guarantee for payments made to a specified person under specified conditions. When we issue letters of credit, they’re Westpac or an Australian big four bank’s letter of ..read more

Don’t delay Imports The current delays with imports, have more businesses using trade finance to fund growth in their business. Trade finance gives you flexibility so that you can purchase products from suppliers and then pay for it as you sell them. Trade Finance is a great cash flow solution for businesses that import equipment or supplies from overseas.  This will allow you to take out a lease or chattel mortgage once the equipment arrives in Australia. Trade Finance has many great benefits: Create greater relationships with suppliers Take advantage of bulk purchasing or discounts off ..read more

Invoice Finance is quickly growing again as a preferred method for Australian small and medium-sized businesses to finance their day-to-day operations and manage cash flow. In light of recent shutdowns, it is expected to become even more popular. Unpaid invoices are the main cause of cash flow pressure. Invoice Finance converts unpaid invoices into instant cash flow, overcoming the cash gap between invoicing and payment which can often extend to 60-90 days. By providing access to the cash from sales immediately, the client can maintain improved control over cash flow to meet day to day expense ..read more

With vaccinations in Australia getting close to mandated levels and our major states starting to reduce lockdowns, there is, at last, some confidence in the market. This will hopefully translate into growth in SME sales and support jobs growth. Whether your business is large or small, well-established, or in start-up mode, it is prudent to take a planned approach to manage cash flow during this expected growth period. Here are 5 tips for keeping on top of cash flow management during this hoped-for growth period. Keep on top of invoicing   It’s easy to let your business admin slip during ..read more

The Opportunity The client discovered that existing and potential buyers had a need for high end, rapid laser cleaning services. In the region that our client is based, there is a shortage of laser cleaners The Problem: Specialised equipment can be difficult to procure here in Australia. Once sourced, the real challenge starts – how to fund the purchase. Banks and non-banks will not finance goods if there is a risk they won’t perform. In other words, financiers want to know the goods work (and exist) prior to providing finance. Our Client is a relatively new business. Offshore manufacturers ..read more

Debtor finance is a class of funding that allows businesses to overcome cash flow concerns. It is a smart way of getting your business the cash it requires to run, invest and expand.  Most companies that sell goods or services, must wait for their invoice to be paid, usually, between 30-90 days. Waiting to receive these debtor payments can lead to a cash flow gap which may turn into a bigger problem especially if the business is unable to support itself from a series of regular outgoings and payment duties that can never be late such as wages, supplier bills, rent, energy costs and taxes ..read more

Proven Track Record Providing a financial track record or records reflecting cash flowing in and out of your business. Show them that you’ve done what you want the financier to do before, so either been in the industry and got a lot of experience from it or you’ve been in your own business and been doing it for a while as well. Stability Show profit and supply is under control and minimal issues with the tax office and proof you’re not going out of business Credit History Making sure we can give you a larger advance as most businesses use insurance to clear this but often requires a larger adv ..read more

AR Cash Flow is a one-stop-shop for fast, easy access to all types of business finance including working capital, company acquisition, equipment finance, business start-up loans, loan refinancing, and commercial property… regardless of your situation. Invoice and Trade Finance Offers A Great Solution To: Businesses that have regular paying customers. Small and medium-sized enterprises need working capital to keep expanding. For businesses that are coming out of a tight trading environment that needs cash today to bridge the gap between invoicing customers and getting paid. Seasonal cash flo ..read more

What exactly is a port to port finance?  Port to port finance is where we finance goods from one port, bring them overseas, to another port, which is usually within Australia. It doesn’t have to be within Australia, but what does have to be Australian is our client. How is a port to port finance different from purchase order finance? There’s a couple of major differences. The first major difference is there’s no need to pre-sell the goods, although that is advised. But you don’t have to have a purchase order from your end customers. The second thing is that it is usually use ..read more