What are the Benefits of Improving My Cashflow?

The Creditworks Group are industry leaders in Debtor Management and Cashflow Solutions.

Every day we deal with businesses of all sizes and in all types of industries that are trading marginally and also successfully.

What is a common factor with all the businesses we deal with, is that regardless of the nature of their profitability status, they regularly incur cashflow stress that can be caused by being poor debtor management and terms of trade.

CreditWorks Financial Solutions has designed a product to alleviate the stress of Debtor Management whereby we PURCHASE the debts and manage them through to collection.

Potential Cost Savings

  • Reduce funding costs
  • Reduce credit control costs
  • No trade credit insurance costs
  • No bad debts
  • No provision for bad debts
  • Payment discounts
  • Positive cash-flows at all times
  • Opportunity costs (expansion of premises and plant and equipment)

Cost Savings (how much can you save?)

  • Reduce funding costs
  • Reduce credit control costs
  • No trade credit insurance costs
  • No bad debts
  • No provision for bad debts
  • No need to offer costly early
  • Payment discounts
  • Positive cash-flows at all times
  • Total Costs Savings?

Opportunity Costs

  • What will you do with the cash?
  • How much extra profit would you gain out of this cash?
  • What would you invest in?
  • No bad debt provisions
  • How much more rebate would you achieve by paying suppliers earlier?
  • Improved supplier terms
  • Total additional profit?

Intangibles

  • You sleep better at night knowing you have virtually no debtor risks
  • Comfort of being able to meet Key Creditors including all tax obligations, rent and wages and salaries
  • De-risks’ debtor portfolio
  • Concentrate on what you are good at-building your business
  • Expansion / growth with the certainty of cashflow
  • Diversify reliance on a single financier
  • Unlock personal property assets to grow the Business

Ask Yourself

  • What is your current weighted average cost of capital ?
  • What is your current rate of Return On Investment (ROI)?
  • What is your current credit control cost ?
  • What is your current and historical bad debt ratio against sales?
  • What is your current bad debt provision?
  • Would you like to improve all of the above?

Facility Details

  • Commission rate to be agreed
  • Non Recourse within agreed debtor credit limit
  • Recourse will apply on debts over and above agreed credit limit
  • Payments to merchants and distributors will be made on 5th working day after each new month (or by negotiation)
  • Competitive Fee Structure
  • Debtor relationship continue to be maintained by merchant/distributor
  • Credit control to be managed by CreditWorks Solutions
  • Solutions in conjunction with merchant/distributor