Most business owners would ask, why would you choose Factoring to finance your business. Banks offer over drafts, line of credits, even short term lending at a reasonable prices. However opting to use the main banks means you will have to wait weeks for these products to be processed. Also banks take control of accounts and assets. Yes you will receive a reasonable price, but at what cost.
Added Bonuses for using a Factoring Lender.
Factoring lenders are only interested in three main questions. Do you have a business? How many debtors to you have? How many invoices do you have outstanding? In most cases there is no need to offer any property assets to obtain a facility. Facilities are set up in less than 14 days.
Financing unpaid invoices will give you instant cash flow instead of waiting 30-60-90 days for payment. Factoring lenders offer some collections, debtor background searches, and verification of invoices. These and a lot more bonuses for using these lenders. Often costing is a major concern for business owners. Therefore it is important to understand that most finance products are priced against risk and administration involved.
Trade Debtor Finance Consultants take the worry out of finding a product.
TDFC was founded in 2007 to cover an industry need to help owners better understand factoring lenders and products. As a result our small family owned business has been assisting businesses find facilities for over 10 years.
Firstly in just one call our consultants will listen, develop a strategy, and provide your firm with a range of options. Understanding over 28 lenders throughout Australia, gives our firm extensive knowledge about factoring.
Don’t guess just call us today for a free quote.
Our consultants will take time to understand your needs. Remembering that if the product doesn’t suit your needs, we wont proceed. In conclusion you can contact TDFC by 1300 00 8332.
Email: email@example.com or www.tradedebtorfinance.com.au
Now the dollar has slumped. This is great news for business. Our Business community can finally compete on a global scale again. For business owners new, and existing, means that they can buy more stock, produce more goods, and quickly take advantage of the market.
Expand Business With Factoring
For the first time in many years, people in general are gaining excitement with the growth figures in business. Not sure if it is related to the Dollar. When our Dollar was high, most Australians took advantage of this by travelling. Great for the family, but our money was spent overseas. Thus our tourism suffered, our retailers, no movies where made here, etc. Now the dollar dropped.
This is great news for business. Our Business community can finally compete on a global scale again. For business owners, new and existing, means that they can buy more stock, produce more goods, and quickly take advantage of the market.
So you look at your cash flow, and you have none.
You have been selling to clients, good and bad, to make ends meet.Now you have a debtors ledger that is aging and you can’t take advantage of purchasing stock. Some would say borrow against your house, get those line of credit loans, get an overdraft, borrow from anywhere. That is great if you can, but in most cases, you have already to survive the market.
Trade Debtor Finance Consultants has the solution. Trade Finance and Debtor Finance products. Factoring or Invoice Discounting has been around for a while. Our firm strives to fit you to the facility, not the facility to you. We give you choices, and offer it, with an obligation free quote. Low interest means that Factoring costs are coming down.
Take advantage, get access to your cash outstanding, and purchase goods, or hire staff, or buy equipment, so that your business is not left stagnant. There are more and more factoring lenders in the country. This is great for business, more lenders, more products to choose from, more chances of getting a facility that is right for you.
Your Business has made the first step in finding out about Factoring / Invoice Discounting and in most circumstances this is at no direct cost to your firm.
Factoring or Debtor Finance?
It’s a very tricky subject. Funding invoices and getting up to 80% of them in 48 hours instead of 30 – 75 days. Using this cash to catch up bills. Grow your business, buy more stock, and or employ more staff. Then getting the balance of the invoice ( The final 20% less fees) once the debtor pays their account.
Let our Debtor Finance Consultants help you with a choice of lenders.
Most companies think when factoring their invoices they are giving away the debt to a lender. This is misconception. The invoice will always remain your asset. Factoring lenders do take charge of the invoice and in most cases chase that debt. Again the payment of the invoice is still the business owners responsibility. Factoring companies do receivable finance, purchasing invoices and funding a percentage of them to you within 24-48 hours of verification. The balance of the invoice is funding, when the debtor pays the full account to the lender.
So if you have ten thousand dollars of outstanding invoices, if the whole book has been verified and completed you can have up to seven to eight thousand dollars in your bank in 24-48 hours. The final 2-3 000 dollars will be paid to you once the debtor pays their account.
Invoice Factoring has different fees, so its important to know what turnover you will be doing in the next 12 months, also the debt turn, (amount of time the average clients take to pay 30 days etc.). This with a combination of how good the back end procedures are in your firm, will determine how much your fees will be.
This question is commonly asked when small business is enquiring about funding of invoices. Often business owners are stretched and cash flow is poor. They have used up their money assets as banks have a secure hold on them.
Therefore the simple answer is no. I believe that taking factoring products to pay behind debt is not going to work. Unless you have a clear plan going forward. Outstanding tax, Creditors giving you the squeeze, or just simply inundated with orders. Debtor Finance is a product that is charged off your bottom line. If your budget is already stretched, chances are this product will slowly finish your business off.