Oct
07
2011

Nova Premium Funding

Nova Premium Funding

Insurance Premium Funding?

What is it?

Spreading the cost of your business insurance premiums out regular payments.

NBF can settle your insurance premiums on your behalf, then you pay us back over the next 3 to 10 months. The Client selects the term.

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It’s an easy way to spread the cost of insurance, smoothing your cash flow and helping you retain the funds you need for other financing and day-to-day operating costs.

Nova Premium Funding can help to avoid large insurance bills that need to be paid in one lump sum by offering a flexible and convenient way to spread insurance costs into smaller monthly payments.

Nova Premium Funding is flexible and can be structured to meet the financial needs of your business.

Benefits of Nova Premium Funding:

  • Retain working capital
  • Fixed flat cost – tax deductible
  • No loan security cost – the policy itself is the security
  • Flexible repayment options
  • Various repayment methods

NBF arranges payment of your insurance premiums by the due date, on your behalf and you repay in monthly instalments. Our funding option can be extended to most types of commercial insurance.

Visit www.nbf.com.au

For more information contact jeremy@nbf.com.au

Sep
30
2011

Nova Short Term Solutions

Short Term Second Mortgages

What is it?

IF by getting that money NOW; you can make a lot of money or solve a major problem, a short term second mortgage or bridging finance might be your answer.

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This is not cheap money, but it often solves a problem. It is designed for a prompt response and, to be in and out preferably in 3 months and no more than 6months.

Interest is always built into the advance and there has to be an identifiable ‘exit’ to the loan, either a settlement, a sale or something that is solid and can be clearly defined.

NBF will always need to know the exit strategy.

As with all NBF loan products they are only suitable for business clients who clearly understand the commercial use of a second mortgage.

Visit www.nbf.com.au

For more information contact jeremy@nbf.com.au

Sep
19
2011

Nova Trade Finance: Your Import and Export Solution

Nova Trade Solutions

Import/Export Funding

Import Finance

What is it?

Many Australian businesses are realizing just how small the world is becoming and the opportunities that are out there; if only you had the money.

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If you have an existing import business or would like to start importing from overseas but can’t afford to have all your working capital tied up in goods that are in transit; NBF can assist with Import Trade Finance to provide the capital required whilst your stock is in transit.

This releases working capital to be used in your business on a day to day basis so that you can grow your business even further and not be constrained because your working capital is tied up on ports and docks around the world.

Further you can create discounts by paying suppliers quicker and even on COD term. This normally creates discounts more than offsetting cost of the financier.

  • Purchase larger orders, achieving further discounts; without financial stress
  • Increase stock turnover without effecting cash flow
  • Costs varies according to risk and how quickly the facility is required.

Export Finance

What is It?

Nova Business Finance can help with trade finance for exporters; large and small.

If you have an existing market; or plan to open one; talk to us at Nova Business Finance.

Nova Business Finance has extensive contacts around the world and particularly strong relationships in the Asia Pacific region and the U.S., that can assist with trade insurance and finance to secure your payments and speed up the payment cycle so you can grow your business even faster.

Visit www.nbf.com.au

For More information contact jeremy@nbf.com.au

Sep
12
2011

Merchant Advance: Finance for Retailers

Nova Merchant Cash Advance

Retail Funding

A Nova Merchant Cash Advance is sale of future credit card and debit card receivables to a provider who purchases these future sales at a discounted rate.

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Merchant cash advances are most often used by retail businesses (even on-line business) that do not qualify for regular bank loans despite having a well established business.

Merchant cash advances are not loans in the usual sense of the word- they are a sale of a portion of future credit and/or debit card sales.

Despite the cost of merchant cash advances, the structure has many advantages over the structure of a conventional loan.

Most importantly, there is no fixed weekly or monthly repayment amount; repayments on the advance fluctuate directly with the merchant’s sales volumes, giving the merchant greater flexibility in managing their cash flow; particularly during a slow season. Additionally, the ease, simplicity and speed of the application process, as well as the lower “hurdles to approval” associated with merchant cash advances are significant advantages.

An example transaction is as follows:

A business sells $27,000 of a portion of its future credit card sales for an immediate $20,000 lump sum payment from Nova. Nova then collects its portion (generally 20%) from every credit card and/or debit card sale until the entire $27,000 is collected.

This type of advance is particularly useful for retail businesses that do not usually qualify for bank loans or traditional business finance products.

Imagine a coffee shop that needs a refurbishment, or a retail business wants to run a promotion or a store wants to take on a fantastic new product line; but does not have the capital – as long as they have been in business for over two years backed by good financials then a merchant cash advance maybe just what they need.

Visit www.nbf.com.au

For more information contact jeremy@nbf.com.au

Sep
06
2011

Invoice Discounting. SME Finance

Invoice Discounting

Invoice Discounting is a great product for a well-developed SME and even many large businesses, that have the opportunity to expand if capital can be released from its Balance Sheet.

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Invoice discounting is an alternative way for businesses to draw money against their invoices that have not been yet been paid, however, the business retains control over the administration of the sales ledger and relationship with the Customer. It can provide a cost-effective way for businesses to improve their cash flow and expand their business.

Invoice discounting is only available to businesses that are well established and with a solid Balance Sheet

The business needs well developed accounting systems

The customer pays a small management fee per invoice, and also pays interest on the amount drawn, just like an overdraft.

On receipt of the invoices, funds are made available at the agreed percentage rate, usually 80 per cent. This can be drawn by the client as required. As cash is received from debtors it is paid to a specific bank account, reducing the outstanding balance and generating cash availability to the client for the 20 per cent previously undrawn; it all runs a bit like an overdraft.

Notifications of further invoices will generate further availability – so the account balance will constantly fluctuate as invoices are assigned, funds are drawn and cash is received.


Features of invoice discounting

· The Client collect the debts and do the credit control.

· The Clients customers do not usually know about the invoice discounting, (even the existence of the lender) although it is sometimes disclosed.

· It is best suited for mature or well developed businesses and there are strict rules regarding the quality of sales ledger systems and procedures.

· There are regular checks or audits to confirm that your procedures are effective.

Visit www.nbf.com.au

For more information contact jeremy@nbf.com.au

Aug
29
2011

Factoring for Small & Medium Business

Nova Cashflow Solutions

Factoring

Factoring is a fantastic product for SME’s and even micros businesses. It works well for contractors, owner operators, wholesalers, service businesses, in fact almost any business that sells to their business Customers on credit terms.

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How Does it Work?

· The customer raises an invoice, which has instructions on it to pay the NBF directly and sends it to the Customer and factor.

· After receiving a confirmation of the invoice, NBF pay cleared funds into the Clients bank account (usually 80% of the invoice amount).

· NBF issues statements to the customer on behalf of the Client. It operates credit control procedures in conjunction with the Client including telephoning the customer if necessary.

When an invoice is paid by the customer

· The customer pays of the invoice directly to the NBF.

· NBF pays the balance of the invoice to the customer less any fees and charges.

When an invoice is not paid

If an invoice is not paid, the debt is then recoursed at 90 days and becomes re – payable by the Client

Fees

For factoring, charges are as a percentage of the invoice amount and varying form Client to Client depending on the number of invoices and the average size of the invoice but a reasonable guide is that it will cost 2% to 4% of the invoice amount assuming usual commercial payment terms. If the Client can accelerate their trading, expand their business or get discounted prices for their input costs, this cost is easily covered in the business.

Visit us at www.nbf.com.au

For more information contact jeremy@nbf.com.au

Apr
04
2011

Factoring as working capital, will it suit My Business?

Will my Business qualify for Factoring?


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If your business needs financing for expansion or just basic operating capital, perhaps you would also consider factoring.

This is a quick overview of factoring, factoring which is also known as cash flow financing is simply a method of business finance, which releases the cash, already tied up in accounts receivable (your debtors ledger) for immediate use in your business.

Factoring of accounts receivable is a quick and easy way for you to improve the cash flow of your business by assigning or pledging your invoices as collateral. It can be a short-term solution or a permanent business finance tool that can give a company the extra cash it requires, right when it needs it; to meet payroll, increase sales, pay suppliers, accelerate payment to suppliers to get a discount; offer prospective customers extended credit terms if they are solid and this can win more business, or meet just about any business cost or obligation.

When applied to business, factoring is simply the use of the company’s outstanding invoices, to raise capital. This facility bridges the gap between the time the invoice is raised (when the sale is done) to the time payment is received

Business Qualifications

Now in terms of business qualifications or requirements, any business that supplies their goods and services on credit terms could be suitable for a factoring facility as long as their customers have the capacity to pay (credit worthiness) and are good quality businesses and further that the applicant business has sound business systems for producing accurate invoices that are able to be confirmed by their customers.

If you would like more information on factoring and how it might assist you in managing and expanding your business; call Nova Business Finance on 1300 1386 186 or email us at sales@nbf.com.au

Visit Nova Business Finance at www.nbf.com.au

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Mar
23
2011

Factoring vs Overdraft? One, Other or Both!

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Why choose Factoring if you already have an overdraft?

Every company or business that is growing and on the path to success has faced the same problems regarding cash flow and a general shortage of a working capital.

The first option or most common solution that many small businesses usually turn to its bank for an overdraft (if the bank will give them one). This is usually (but not always) secured against the family home. This can meet a cash shortfall; at least in the short term, but is it the right finance option for your company?

Especially if it is a rapidly growing company?

Is a debtor finance option such as factoring better suited to fueling your business expansion?

Here we explore some simple facts about the suitability of both methods with respect to helping a company or a business grow.

Now, the problem with bank overdrafts is simple, the level a bank will set an overdraft limit at, will be dictated by a company’s historical trading data, i.e. previous years turnover gross profit & net profits using their current lending criteria which can change at any time without notice and is also linked to the hard security that is offered. This is usually the family home.

Without doubt a bank overdraft can provide a useful infusion of capital, but how far can a company develop on fixed amount of capital from a finance option that could be withdrawn at any time (and that does happen), even if your business is unaffected by general trading conditions.

The other option for an alternative cash flow finance product is factoring; which exploits what for many businesses are their primary asset, i.e. invoiced debts! The debtors ledger is a “here and now” asset that can secure a factoring facility that dynamically moves forward with an expanding company. You are limited by your sales NOW; not what happened last year.

Without a debtor finance facility, increased credit sales means more cash tied up with your customer’s unpaid invoices on your sales ledger, those trade debts throttle your cash flow!

Unless they are released, your business growth is slowed.

Both Factoring and overdrafts can have broadly similar costs in terms of cash cost. In many cases factoring will be more expensive but much more flexible in that it grows with your company and your sales and is not constrained by historical trading figures and the stagnant or falling value of a piece of real estate.

When a company or a business is faced with cash flow problems then you should choose the option that suits you best.

Regular trips to the bank spending time re-explaining where your businesses is, negotiating increased credit limits and potentially leaving with insufficient funds to meet your needs and having to do it all again in a few months time, or would you prefer to make the most of your invoiced assets, no continual and repetitive meetings, no time lost, just submit your invoices to your preferred factoring lender, bank your trade debts now and let your business move forward at the pace set by you not someone else!

Think about it!

If you would like more information on factoring and how it might assist you in managing and expanding your business; call Nova Business Finance on 1300 1386 186 or email us at sales@nbf.com.au

Mar
12
2011

I have a start up small business;can I factor?

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Factoring could my newly established business qualify?

Many businesses; either newly established businesses or existing businesses have to raise working capital to run their day to day operations and more importantly to expand.

There are many different kinds of business finance available. One example of business financing; specifically for working capital is Factoring.

Factoring is also sometimes known as cash flow financing and is simply a method of business finance, which releases the cash, already tied up in accounts receivable for immediate use in your business.

Now, if you want to use factoring on your new business you need to consider if the business qualifies for it and also if factoring is suitable for you business. Also; whether it is the most suitable form of finance

It is fair to say that most businesses that sell their goods and services on credit terms. Whether it is newly established business (a start up) or a well established business, can qualify for factoring finance.

The key considerations are usually; is the customer that is going to pay the invoice credit worthy and also, is the customer going to pay in full and on time. In this regard the building industry (for example) and other industries where there is a potential for deduction or set-off or part payment, probably won’t qualify.

In fact, start-up businesses often use factoring, since the majority of businesses are undercapitalized, and if they are successful and grow quickly, the need for additional working capital will grow right alongside the growth of the business. Factoring as a form of business finance is ideally suited for these situations.

For most start-ups, available cash is tied up in debtors and stock. Due to a lack of real estate security and established trading history, many banks and other financial institutions are unwilling or unable to help them. In assessing any application, banks will look at the consistency of turnover over a number of years and especially the real estate security available.

So, in summary, Factors will look at start-ups as well as established businesses. They will look closely at the systems and the experience of the business operator and also closely at the quality of the individual customers as the Factor of looking to the Customer and well as their prospective Client in the management of the finance facility.

If you would like more information on factoring and how it might assist you in managing and expanding your business; call Nova Business Finance on 1300 1386 186 or email us at sales@nbf.com.au

Visit Nova Business Finance at www.nbf.com.au

Feb
15
2011

What is Factoring

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What is Factoring? What does it do? What are its Benefits?

If you own a business that sells to customer on credit terms and you need some kind of business finance for expansion or just for day to day operating expenses, then you should consider Factoring.

Factoring, sometimes called cash flow financing, is simply a method of business finance, which releases the cash, already tied up in accounts receivable for immediate use in your business. It allows you to raise finance based on the value of your outstanding invoices. It also gives you the opportunity to outsource some of your sales ledger operations and to use more sophisticated credit rating systems.

Once you have set up a factoring arrangement with a Factor, it will work as like this:

Once you make a sale, you invoice your customer and send a copy of the invoice to the factor. Most factoring arrangements require you to factor all your sales. The factor pays you a set proportion of the invoice value within a pre-arranged time – typically; most factors offer you 80-85% of an invoice’s value within 24 hours of confirmation.

The major advantage of factoring is that you receive the majority of the cash from debtors within 24 hours rather than a week, three weeks, 2 months or even longer.

In return,

* The factor issues statements on your behalf and collects payments – this includes contacting late payers by phone and pursuing outstanding invoices. It is in your interest to participate in this process and assist with collections as the sooner the invoice is paid, the cheaper the financing cost. It is important to remember that usually your company will remain responsible for reimbursing the factor for bad debts, unless you have arranged a ‘non-recourse’ facility.

* You receive the balance of the invoice (less charges) once the factor receives payment.

* The factor provides regular reports on the status of your sales ledger – you should expect regular statements. Many factors can offer you instant online account information.

Benefits:

Benefits that you receive through factoring may vary from business to business, however the increased cash flow is the one factor common to all of them, and therefore, the business may experience the following:

· Increased sales through increased production

· Reduction in administration overheads

· Carry more finished stock for sale

· Increased profit through increased sales and overhead reduction

· Ability to engage additional sales staff

· Funding an expansion of promotions campaign

· More aggressively seek new business

· Increase orders by offering your clients credit terms

· Receive supplier discounts for paying COD (Discount for cash)

· Increased buying power, bulk buy and order by the box-full and receive further discounts.

· Enhanced credit rating, through paying creditors on time

· With discounts on supplies, you can have the competitive edge on your opposition

· Be cash ready to fund unusually large orders

· Have the confidence to take on new accounts

· Tax deductible – all fees are fully tax deductible

· Effective time management – no need to waste your valuable time chasing accounts.

· Enhanced credibility with customers – they now know you have the ability to fulfill orders consistently (very useful when working with blue chip companies)

If you would like more information on factoring and how it might assist you in managing and expanding your business; call Nova Business Finance on 1300 1386 186 or email us at sales@nbf.com.au

Visit Nova Business Finance at www.nbf.com.au

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