Have you started looking to increase your cash flow through factoring? If you have found a lender to fund your unpaid invoices, that’s great! The next thing is to make sure you understand factoring fully before you sign the dotted line. There are questions you should ask your lender so you have all the information you need to make the right decision. Trade Debtor Finance Consultants call these questions the Factoring Key Points. Ask your lender and you will avoid any shocks that you didn’t know about.
Key Point 1
How much does Factoring cost and what is my interest rate?
Key Point 2
How much is it to setup a factoring facility and how long does it
Key Point 3
What percentage do you advance and when do I get the
Key Point 4
What are your break fees if I want to leave early?
Key Point 5
What is my contract term?
Key Point 6
Does the Factoring firm contact my debtors, or do I maintain the collection of monies?
Key Point 7
What is the main difference between each factoring company?
Key Point 8
Is the factoring system online and easy to understand? Ask for a brief explanation.
Key Point 9
Do we need Real Estate Security to get a factoring facility?
Key Point 10
What happens if the debtor doesn’t pay and goes into Administration?
For more information on Debtor Finance head over to http://www.tradedebtorfinance.com.au/services/receivables-finance.html