Cashflow Running on empty, Top up with Invoice Discounting.
Cashflow Running on empty, Top up with Invoice Discounting. It is very easy for our firm to say this. Often each business has a range of scenarios and issues to address. Invoice Discounting, Factoring, and Debtor Finance are all finance products developed to assist owners improve Cashflow.
Will Invoice Discounting work?
Invoice Discounting is not here to help you collect invoices. Most Australian business’s rely heavily on their customers paying their invoices on time. Having outstanding funds overdue, puts most businesses in some type of financial hardship. In most cases it causes the business to have cash flow issues. Some believe that Debtor Finance or factoring will help with this Cashflow. In most cases its further from the truth. Lenders are only interested in financing invoices. In most cases they are not focused in the collection of invoices.
Debtor Finance Lenders can help if your clients will extend their terms. In these cases they often will extend payment terms and allow a small increase to clients who accommodate them. Factoring lenders will fund those debtors absorbing that increase, but the current business owner can utilise cash from those invoices to grow.
TDFC Explains all about Invoice Discounting!
TDFC (Trade Debtor Finance Consultants) are here to offer you a wide range of lenders and products to suit your business needs. Whether it be a long term agreement or a short funding facility. TDFC consultants explain it all in great detail. TDFC consultants also provide assistance for the life of the loan, having experienced personal whom know the ins and outs of these services.
How do Debtor Finance Lenders work?
Clients submit their ledger for the week or month and the Credit department of the debtor finance lender will verify those invoices. Once they have verified a percentage of invoices, lenders will make available up to 80% of their whole value to the client to utilise. When the debtors pay, each invoice is paid off the ledger. The final 20% of the invoice is released to the client once invoices have been reconciled. Basically its an overdraft on your receivables. You as the client dictate how much you borrow or draw down each month. And only pay interest on that amount you have borrowed.
Invoice Discounting is crucial to a business’s Cashflow. For a fee between 2-5% for 60 days will save you much heart ache. Some great advantages to Invoice Discounting are you can dictate how much interest you are paying by how much you draw down each month from your availability of funds.
Example is you have $100 000.00 worth of invoices. Once verified you can draw with Invoice Discounting up to $90 000.00 within 24 hours. Flexibility is if you only need $20 000.00 your only paying a per annum interest on that amount. Sure you can borrow more if required. Faster paying debtors will pay their invoices and this amount is reduced like a loan. Its funding made easy.
This is how TDFC assist your business and decision regarding Invoice Discounting.
This family owned and operated business has been helping all types of businesses receive a better understanding of these Cash Flow products. Giving owners options and explaining products and lenders, gives your business the opportunity to see if it will assist going forward.
In conclusion for a free quote on these Invoice Discounting products call TDFC today
1300 00 8332 or email and inquiry to our website www.tradedebtorfinance.com.au