Add Real Value To Your Client's Business


Informing clients of the lesser known finance solutions can add real value to their business, and yours.

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Your clients look to you, as their trusted advisor, for information on financial options that are available to them. You can add real value to your clients by providing information on financial product alternatives that many of them would not necessarily know about or consider but which may well represent a viable solution.

It's one of the surest ways to retain existing clients and continue to expand your client base through word of mouth.

1. Cash flow options

A healthy cash flow is vital to the survival of any business. In fact, according to the ASIC’s 2013-14 insolvency report, inadequate cash flow was nominated as the primary cause of business failure in 41% of cases.

Many businesses manage their cash flow through vigilant accounting and collections processes and by using forecasting to regulate inventory levels and holding costs. However, invoice discounting facilities such as Classic Funding Group's Confidential Debtor Finance, can also be a cornerstone of these efforts.

"A common misconception is that Debtor Finance is only used by companies that are struggling with bad debts and cash flow management," says Kevin Melville, State Manager at Classic Funding Group. "This is inaccurate, as Debtor Finance is actually used by savvy businesses to proactively manage their ledger in order to fund business growth."

Mr Melville noted that advisors should inform their clients of the full array of funding options available to them if they want to assist with their cash flow management. For instance, Debtor Finance can also be integrated with an Equipment Finance facility, allowing clients to preserve capital whilst at the same time acquiring new assets. This is a powerful financial tool that has proven very popular with Classic Funding Group’s existing client and introducer base.

2. Timely ATO debt repayments

According to the Australian Taxation Office (ATO), cash flow management and good record keeping are key to making timely payments thus avoiding tax debt. Nonetheless, unforeseen circumstances can leave businesses with substantial tax debts that can be crippling to even the most well run organisation.

The ATO generally works with business owners to clear up outstanding debt however, if not managed promptly, directors can be held personally liable and made to sell any non-essential assets to repay tax debt.

As their trusted advisor, you can add significant value by not only assisting them in arranging the finance to pay back any outstanding tax debt, but also proactively advise them on how to manage these debts moving forward.

“Clients can take advantage of a “Sale-Back” facility from Classic Funding Group to raise funds”, says Mr Melville. “Under this arrangement, Classic will essentially free up any value that resides within your client’s current unencumbered asset register. Your client would then be able to repay their tax debt, while making predictable monthly repayments. Where the value of the client’s assets is not sufficient to meet the tax debt, the “Sale-Back” facility may be combined with a Debtor Finance facility.”

Mr Melville cautions that it may be more difficult to arrange finance once the ATO issues garnishee notices, director penalty notices or commences legal action which serves as a timely reminder to proactively review your client’s tax position and available options.

For further information about cash flow management solutions or capital raising for tax debt repayments, please contact Classic Funding Group on 1300 780 895.