Factoring used as a line of Credit funding invoices ahead of payment.
Trade Debtor Finance Consultants (TDFC) have noticed a large increase in lenders providing a line of credit. As a result funding invoices that are not due of payment for 30 days or more.
Standard factoring offers up to 80% funding on invoices with the balance being paid when they get paid less any fees or charges. Line of credit facilities offer less of percentage, but a revolving line of credit on invoices each month. This is less messy and easier to accommodate. However, it is often more expensive as it’s more risky to the lenders.
If you have debtors that don’t like being contacted this is perfect. Therefore if you have a turnover of less than 1.5 million per annum, then it’s worth taking a look at.
Trade Debtor Finance Consultants has an ever increasing number of lenders who offer this product. As stating when offering advices around these factoring facilities, TDFC would offer a combination of factoring lenders so you the client get a choice to choose from. This is part of our no upfront, obligation free quoting in writing.
So if your business needs some added cashflow, may not be asset rich as the banks like, we at TDFC will offer you some great lenders and try and get the best price and facility to suit your business needs.
Often business owners have a great idea, and have some equity to get that idea started. Often 1-6 months into their reality they hit a brick wall.
Most common issues are:
1. Business Cash flow
2. Time. I believe if Business Cash flow is fixed then it will free up time. Most owners will agree that with cash, they can have flexibility. Owners can employ more staff, purchase more up to date equipment, and improve marketing.
Businesses often use up their number one asset first (their cash). This is before seeking help with the banks or other private lenders. This is a big mistake. Business owners can take advantage of factoring, or invoice discounting and keep their cash in the bank, should things go wrong. They can also take advantage of trade finance, Over drafts, Line of credit funding as well, thus keeping the cash they have as a back up.
Our Factoring Consultanting Business
We at Trade Debtor Finance Consultants are a family business, and for the price of a call can place you in the right direction, with a range of products, lenders, and brokers. We are not only here to help you with our products, but want to help owners with a range of different products to help your business grow to your expectations.
Obligation free quote in writing with up to four options.
Pass the word, as we cant compete against lenders marketing budgets. So from Transport to large business, word of mouth is our key. Trade Debtor Finance Consultants is at no direct cost to your business.
TDFC offers every inquiry an obligation free quote in writing. Four of the best lenders out of a possible 26 are chosen. Our consultants offer up to the four of the best options that suit your business.
This Factoring product is not a collection agency. Therefore your business can retain its collections procedures. Invoice Discounting companies advance a percentage of the invoice. As a result normally up to 80%. This is similar to a loan. You receive the final 20% less fees, when the debtor finally does pay. So why would you want to have this type of facility?
Trade Debtor Finance Consultants would like to reveal some facts about Debtor Financing or factoring versus Overdraft Facilities. Price: 1.Overdrafts. There is no doubt that a commercial loan from a bank will be cheaper from any non bank lender. Continue reading “Factoring versus Overdraft”
Reading a book about small business and there was an interesting section about this small business located in Sydney. In his experience with cash flow he writes about how it is important to be aware of your expenses in business. For example he shares his story on how he had more people owing him than what he was getting paid and he didn’t want to chase for his money. He had a pile of $200,00 worth of outstanding invoices. Later he went to the bank and took out a loan to pay his staff but the problem wasn’t solved. Peoples jobs and his business are on the line. Continue reading “Businesses find cash flow solutions”
Trade Debtor Finance Consultants Pty Ltd (TDFC) is a business that was set up as the first of its kind in Queensland to offer no nonsense answers about these products. With over 28 lenders in Debtor Finance and 9 factoring products to choose from, TDFC consultants explain, setup, monitor, and service your needs for the life of the deal with this Invoice Discounting product.
Factoring / Invoice Discounting is a finance facility that advance cash flow on invoices. This service allows up to 80% funding in your businesses cash flow instead of waiting the terms to be paid. Imagine getting 80% of your funds in 48 hours to pay wages, pay for stock in advance, get bills paid on time, or hire those extra workers. More sales means more profit, more staff means more sales, less expenses means greater profits. All these can be achieved by utilising this factoring product.
TDFC consultants explain and show your business the way to achieve this. For a small fee you can get access to your cash and grow your business to the next level. As well have a TDFC consultant guide you through the whole process. TDFC also can explain a trade finance product which will work in conjunction with a Debtor Finance facility.