So it looks like we can finally go to the Gold Coast or somewhere else for a holiday, as the border restrictions come down. Getting out from where we are is undoubtedly going to be a relief. I might go a bit further north to the Whitsundays, fly into Proserpine Airport and cruise around there for a while.

When I get to the airport, I will hire a car; it would be ridiculous to buy one.  I only need a car for ten days to serve my needs, and then I will be dropping it off and flying back. It would never occur to me to buy a car for such a short period.

Invoice finance should be seen in the same way. Cash to serve a specific purpose, not a long term financial commitment.

Drawing against the debtors can serve a heap of purposes, not just keeping the cash flow going. It could be that opportunity when a business owner routinely takes money from the business for personal investment; it could sweeten a relationship with a supplier for early payment, especially as materials in construction and manufacturing get short.

Think of it as renting money. Like the car, when you go on holiday or a business trip, you only have a short term commitment – and with drawing against a debtor, when the debt is paid, the commitment is extinguished.

Of course this sort of funding shouldn’t be over used, and you need to have a plan to use it and withdraw form it – be it become addictive.

Talk to us about this and any finance plans you have, borrowing money is one thing, planning finance is another.

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