There are a number of reasons why you might want to bring revenue recognition forward in your business.
It might be that you’re looking to grow and you’re pitching for bigger work and you’re worried about maintaining your cashflow as you pick up multiple jobs. It might be that you have a bit of a seasonal dip in cashflow, and bringing forward your revenue recognition helps ease those cashflow challenges.
A way that you can achieve this as with invoice finance.
If you have supplied a product or a service to another business, the day that you write the invoice, you can claim up to 85% of that invoice value straight away.
Then once your customer pays that invoice, that clears the amount that you’ve drawn and the balance gets sent through to you meaning you can recognise the revenue from your invoice up to 90 days earlier than you would without an invoice finance facility.
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The Commonwealth Treasury has approved the first participating lenders in Phase 2 of the Government’s SME Guarantee Scheme. Key information on Phase 2 of Government