Cash Flow Advantages of Budget too slow- Factoring Fills Void

Many little business people cheered the introduction of the $5,000 write-off for new vehicles announced by the Gillard government as part of the 2011 Spending budget. Although this policy is much better in comparison to the Entrepreneur's Tax Offset that comes along with a compliance burden, the money flow advantages for numerous small enterprises are not that fast flowing and are too small to actually make a difference. Nevertheless, factoring can bridge the gap.

Let's take a look at the numbers. A $5,000 write-off will indeed save little businesses on the tax that they pay, but sadly it will not be introduced until the 2012-13 tax year. Consequently, a small company will not be able to claim until the following year.

Once again, the government has overlooked the reality that SMEs or small to medium sized businesses are currently in dire require of some help. Only big corporations can make use of five year plans and modify their assumptions and predictions according to the modifications within the marketplace. However, small companies particularly those SMEs who aren't part of the resources boom are paying much more attention to surviving and remaining operational and the tax cut that promises to put cash in their pockets the following year might not be enough.

To bridge the gap and assist small businesses that require money flow assistance are factoring businesses that provide accounts receivable to SMEs. Invoices are converted to cash by factoring companies when they buy the SMEs outstanding invoices for goods and services rendered to companies which are credit worthy. You will find factoring businesses that don't charge anything, which is great for small businesses that are planning to attempt this type of service or those that plan to use it as soon as in a whilst.

For more info about factoring finance with out establishment or monthly fees, call The Interface Monetary Group (IFG) at 1.300.957.900.