All businesses wish they could all have their own money tree. It’s just not that simple.
Debtor Finance, Factoring, Invoice Discounting have all been exploited in the past for all the wrong reasons. Robbing Cash flow to pay behind payments or bad debt experiences has often given businesses and factoring lenders a bad experience . For Example: what happens when the company gets into financial trouble and the costs of the lender add up, or the lender puts their funding on stop for whatever reason. 5/10 businesses in this position say the factoring lender caused their business to fail.
When it comes to responsibility of bad decisions: Who signed up for the facility, who knew the costs, and who had the previous debt or problem before factoring. The owner did. Whether the owner was explained the product and its structures fully, we at Trade Debtor Finance Consultants Pty Ltd (TDFC) will never know. Regardless of that, the owner holds all the cards and often an incorrect decison becomes a fatile error in this cash flow finance product.
If the Finance facility is operated and maintained properly and is correct for your business, it works.
TDFC has experienced staff to help you monitor the factoring lender and product to avoid any mishaps. They also have a large network of professionals to assist your business with any scenario. TDFC stand by service and if we don’t know we will use those contacts and endeavour to find a solutions for you, to make the correct decision.
Another big statement is: owners say that their cashflow is great, we don’t need to debtor finance.
If you business is in that situation, of course you wouldn’t get a finance product. WRONG. This are the ultimate reasons for Invoice Discounting. Funding your invoices in advance of waitng to be paid, gives you the opportunity to push your business limits. Having the opportunity through Factoring, will give owners the ability to grow faster and strong more rapidly without security. You can place factoring costs in new job quotations . If you have more stock or staff you have the potential of more sales and growth. More growth means more profits and greater buying power.
The main alternative to Invoice Discounting or Factoring is the banks and overdrafts. You can go for that overdraft or line of credit, but in most cases its fixed lending and doesn’t grow when you do. Cheaper yes, but no flexibility can cost you jobs. Also securities of banks, can cost you equipment, and often banks take ownership of your accounts. Anything goes wrong, they put it all on hold. Most businesses are unaware of the security or power a bank has until its too late.
Debtor Finance is often secured by the debtors. It can be disclosed or undisclosed. You can have debtor insurance to help eliminate bad debt. It can be selective, it can be fixed fee, there are so many other versions available.
TDFC explains all the benefits of factoring and Invoice Discounting. TDFC has over 28 lenders and numerous products for you to choose from. With one call TDFC experienced staff members help you find the product and lender to suit your business needs.
For more information please contact TDFC today or visit our website www.tradedebtorfinance.com.au