Factoring – Free Quote & Consultation
When businesses start Factoring, often its been given a reputation of disaster. Hence this product was given to businesses who were in diabolical trouble. As a result factoring is blamed for the collapse.
Invoice Discounting, Factoring or Debtor finance is the name given when financing invoices. It involves getting paid in 48 hours instead of waiting 30, 60, or 90 days.
Subsequently factoring finance has been present for thousands of years. Often it has been used as a method of last resort. These factoring lenders were often copping the blame for sending business’s owners broke. In most cases this product will highlight deficiencies in company procedures. Subsequently if left unchecked will become a nightmare.
In some circumstances it can be a very costly exercise. Because clients think factoring companies will give them cash flow and collect debts for them. Often forgetting that they are finance companies and make monies of interest borrowed.
Trade Debtor Finance Consultants was set up to offer business’s a free quote. TDFC consultants offer in-depth consultation about these products. Our firm is here to answer those more difficult questions. We offer support for the life of the factoring loan at no direct cost to your firm.
Used in the correct way, Factoring can be used in a positive way for growth. It may not be as cheaply priced as a Line of Credit, or overdraft (which are normally set and secured by directors assets). However Factoring or Debtor Finance is often secured by one business asset. Your debtors! Borrowing against your debtors depends on the size of your receivables not your assets.
Credit Checks completed in your Factoring Facility.
Some benefits are Factoring firms do credit checks. They also set limits. Set exposures, and is the safety net for business’s looking for new clients. You should give Factoring firms your new clients ABN number before you commence sales or work. Lenders will conduct a credit search and set a limit assisting business with the application process.
As stated you don’t want factoring firms collecting invoices. Customers can note fees are determined by the length of time it takes debtors to pay invoices. So some would say it’s always a conflict of interest. Keep the collections in house. Be sure your know the length of time it takes to be paid, and factor accordingly.
TDFC consultants help understand all the ins and outs of these products. We find the lender or lenders to suit your factoring requirements with just one call.
For a free quote or consultation on Factoring call 07 5547 8731. Or please email: email@example.com www.tradedebtorfinance.com.au