Our Approach
Providing solutions that deliver genuine outcomes
At AddCash our focus is to provide solutions that deliver genuine outcomes for business owner operators. The more AddCash can understand the strategic goals of a business and its owners, the better placed we are to be part of the wider solution.
We start with an initial no obligation discussion with the business owner, their Accountant and Finance Broker, to understand the combination of opportunities and challenges being faced that are unique to your business.
Our working capital solutions can be incorporated to assist Business Owners with:
Opportunities
Asset Protection
Set up the business to stand on its own by quarantining personal assets like the family home from the risks of business operations and finances.
Growth
Support for business startups, or to enter alternate markets, launch new products, employ more workers, build your fleet, expand production, or tender for large contracts.
Acquisition
Buying out a business partner, merge with or acquire another business, supplementing vendor finance, or a ‘financial assistance’ share buyback, or succession of the business to the next generation.
Challenges
Cashflow Timing
Profitable on paper but cash poor, delays collecting money routinely causing a timing gap leaving you low on cash when you need it most.
Capital Injection
Inability to obtain bank finance or limit increases, or when there are competing interests that hold up or prevent further equity investment.
Restructure
Unlock Value
Without understanding the opportunity or challenge being faced, or properly identifying the collateral available for finance, or considering products and features best suited in the ever-changing environment of business finance, the discussion will be limited to price. The trap is to equate interest rate with overall value.
For example, pledging the family home, a personal long-term asset, to secure an overdraft to help manage short term business cashflow is the cheapest finance option available after trade credit offered by suppliers. The trade-off for a cheap interest rate is to restrict home equity from use in other long-term strategic investments and expose personal assets directly to business risks. We encourage business owners to work with their Accountant and Finance Broker to determine what available options best suit their circumstances and strategic goals.
Where is the value that will drive your business return on investment?
Does the finance structure allow the business to take advantage of new opportunities as they arise?
Are finances balanced by prioritising the cheapest debt available to long term investment needs?
How much time is wasted juggling regular cashflow commitments?
What overtime and productivity loss can be removed?
Are personal assets locked up with business finances?
Should an asset protection strategy be developed?
What efficiencies can be targeted by holding more stock, reducing shipping delays, taking advantage of supplier volume and early payment discounts?
Is the business overburdened with commitments that restrict operations, erode margins and strain relationships?
Structuring Debt
Structuring business finances involves identifying the collateral available to a business and their owners that lenders have an appetite to finance. This is analysed with the registered security interests held by banks, financiers and trade suppliers over the business.
An assessment can then be made with the assistance of your Accountant and Finance Broker to determine what current structures are fit for purpose and identify where improvements can be targeted, immediately and in both the short and longer term.
Optimal structures look to limit the use of long-term assets to fund short term obligations and avoid unnecessarily pledging collateral to lenders that could be more efficiently used elsewhere or quarantined for asset protection purposes.
A key consideration for any lender is the purpose of finance. Products are specifically designed for the collateral class they are funding and the expected method of repayment.
Features vary from lender to lender and are constantly changing. It is important to consider what products are available, which features are most important to you, and assess the best fit for your strategic goals and funding needs. Accountants and Finance Brokers are regularly meeting with lenders and being updated on products, features and pricing available in the market.
AddCash solutions can work alongside your existing finances, operate stand-alone, or be paired up with other lenders as part of the wider strategic solution.