Some business owners have searched and searched for an answer to their cash flow problems. The bottom line, there is no free solutions.
Factoring is a solution that businesses need to start using and its called a number of names. Invoice Discounting, Factoring, Debtor Finance or Invoice Finance. All businesses are different, so are facilities. All costs are different as each owners has different systems, size, and turnovers.
Some common questions are.
How much does it cost? Am I locked in a contract? How many debtors do I need? Do I need security? What security do lenders need? Do they contact my debtors? What happens when the debtor doesn’t pay? And so on….
What is Invoice Discounting?
This is a type of borrowing will help improve business cash flow by funding accounts receivable. Are you waiting 30, 40 or 90 days to be paid by your clients? You can access to up to 80% of those unpaid invoices within 24 hour of verification.
When the invoices are paid in full by your debtor, lenders release the remaining 20% less lenders fees to your account. This helps businesses grow and pay those bills. Not having to wait for the cash to be in your hand creates flexibility.
What are the benefits?
Business owners who have great debtors that pay on time are often frustrated that they don’t pay faster. Factoring invoices allows owners to use the upfront cash to chase their ideas.
Some facilities are confidential and debtors have no idea you have a facility.
Selective funding of invoices can also be popular.
By some firms financing invoices gives the extra cash flow to pay those expenses or improve the service provided. Also allows owners to purchase more stock or hire more staff in times of need. This Cashflow can give flexibility to buy better equipment, or obtain supplier discounts.
How does Trade Debtor Finance Consultants assist with setting up a facility using Invoice Discounting?
TDFC can provide a free quote with the most affordable debtor finance solutions out there. Why get locked into something expensive or spend thousands of dollars only to find out its not the right product for your business. TDFC makes sure the facility meets your needs. Our consultants make undisclosed calls to lenders insuring that lenders can offer a product at an affordable price without damaging the clients credit searches.
Do you want more information on this product Invoice Discounting?
To get more information call us now or fill out a quote form on our contact page. Let us give you a free quote with no obligation to continue.