What is cash flow?
Cash flow is the total amount of money being transferred into and out of your business.
It’s the difference between the available cash at the beginning of your accounting period and what’s left at the end of the period. For example, cash might come in from sales you make, invoices paid, and loan or investment proceeds. While it goes out to pay for your operating and direct expenses.For businesses that hire out staff and equipment, there is often a cash flow gap between when your end customer pays and when you need to meet your payroll commitments. That’s when APositive steps in to advance payments so that you can unlock the value of your receivables.
How much invoice finance can I get?
You can access up to 100% of the value of your customer invoices for temps and contractors. Permanent placement invoices will generally be a lesser amount. Contact Us to find out more.
The choice is yours.
APositive work with you to understand your cash flow requirements. For example, if you only need your payroll amount advanced, we can pay your margin when your customer invoice is paid. Alternatively, we can pay you some, or all, of your margin upfront, subject to the approval of your systems. Amounts not paid to you upfront is paid immediately after the invoice payment is received from your end customer.
What will it cost?
A range of pricing models is available to help meet your individual requirements.We charge a single fee as a percentage of your invoice so that you know your costs upfront, including what impact it will have on your gross margin.
There are three factors that determine the fees we charge, and once we know this information, we can set a fee relevant to your needs:
- The type of timesheet and invoicing system you have in place to manage payroll and invoicing
- The credit quality of your customers; and
- Your customer payment terms
As a guide APositive fees will be approximately 1 to 1.5% for a 14-day period, based on 80% funding of an invoice.
APositive Base Rate – Is defined as the published Westpac IF 30 Day Bill Rate + 2.5%. This is currently 4.06%. Last updated 15/01/2021
Can I fund permanent placements?
Yes. APositive have a unique offering that allows you to finance permanent placements.
Who owns the contract with the candidates?
You can either engage your contractors yourself or outsource the engagement to an APositive certified contractor management provider.
Who owns the customers and their invoices?
You own the contract and relationship with your customers. You work hard to develop and maintain your customer relationships, so they should belong to you! The value of your business is largely in your customers – and we make sure the value you build is yours.
What happens with late paying customers?
APositive also offers a collection follow up service. We can take this off your hands completely or we can help follow up late paying customers in conjunction with your own efforts. Our specialist receivables management staff can also step in to help get your customers to pay on time with proven and friendly follow up processes.
How can I avoid bad debt?
APositive help you minimise the risk of bad debt by credit checking all of your current and prospective customers. We provide a credit management support function as part of our funding solutions, at no extra cost. If the risk of bad debt is a concern, we can assist with setting up a Credit Insurance Policy that will protect you if a customer goes bad.
Is there a maximum limit of funding I can get?
We are in the business of supporting your growth. The only limit is how large you want your business to get. As long as you grow with good customers, who pay their invoices, there is no funding limit.
Do you provide reporting?
The APositive online portal provides you with comprehensive reporting about all current and past invoices, fee statements, cash receipts, and debtor ledger movements. You can freely access these reports 24/7 at our Client Login. To find out more book in a demo with one of our client managers.
Why would I use APositive instead of a bank?
It’s a fact of life – the banks are difficult to deal with, especially if you’re a startup or early-stage business. This is mainly because banks often consider SMEs to be undesirable clients, and they will only lend to you if you meet their strict requirements.
APositive specialises in SME recruitment and labour-hire businesses. So, we understand your cash flow needs and have designed workforce finance solutions to suit your business model.
We will not squeeze your business into a generic offering that caters for all industries. Our services are tailored for the recruitment industry. And, not only do we provide access to the funding you need, but we care how you spend your margin. That’s why we also offer to optimise your back office so that your money and systems are all geared towards one thing – growing your business.
Do I have to sign a director’s guarantee?
APositive advance to you payments owed by your customers. We do not lend you money. As long as your customers pay their invoices, you will never be in debt to APositive. As a director, you are required to guarantee that your invoices will be paid. But, as long as your paperwork is good, your time sheeting system is strong, and your customers are of reasonable credit quality, the likelihood of payments not being made is low. If you need any assistance with improving these systems or reducing your risk, we can help with that, too.
We are not accountants or recruiters who have set up a funding line as an add-on to a core business.
And, we are not subject to bureaucracies and stringent credit policies like banks and large debtor finance providers.
Instead we are backed by Jagen, the investment vehicle for the Melbourne based Bori Liberman family investments office. The portfolio is diverse and includes investment across many domains within Australia and overseas.
Not being governed by banks or large institutions enables us to be flexible, offering you quick decisions and a tailored service that will meet your cash needs now, and as you grow.
The choice is yours.
We love technology, but if electronic timesheets do not suit your business, we can still provide you with the invoice finance, payroll funding and back office solutions you need.