Most businesses invoice our their products or services on account. Normal terms are 30 days. This has been going on for generations. Most business owners rely heavily on credit in order to supply more product to an ever growing sales ledger. More you spend and pay back the more credit you receive.
Simple business really, until the credit drys up. All it takes is for one or two debtors to delay in paying and suddenly your cash flow starts to stress. Not being able to full fill future orders, pay bills on time is suddenly a big concern.
What if I told you that factoring or debtor finance lenders specialize in growth. Your facility grows with the amount of clients you have. As you become a larger client, lenders reduce their fees and extend finance rapidly. To avoid defaults, lenders conduct searches into credit back grounds of future clients to protect your investment. Also factoring lenders security is the invoices involved.
Ask yourself does overdraft, line of credit, or credit card facility do that? Often with bank facilities. If there is any delay in payment the whole system stops. This can be catastrophic to a business. Not with debtor finance facilities. Factoring staff work in with you to help pressure or pursue payments of slow paying debtors.
Fees, yes it will be more expensive that an overdraft or line of credit. However your ascertaining flexibility. Not only in the amount your drawing, but also flexibility in the facility should you grow. Often bank products take weeks for growth to happen, and it often depends on your equity in assets. Fees charged can be offset in growth or tax credits. Factoring if used correctly can be a weapon for success in business in a number of ways.
Contact Trade Debtor Finance Consultants Pty Ltd.
This is where Trade Debtor Finance Consultants comes in. Our firm offers a complete explanation of products and lenders. Finalizing with an obligation free written quote. If you choose to go with one of recommendations. We will give you support for the life of the loan if required. One call could change your businesses outlook for the future. Call us today 0460 448 955 or email email@example.com.