Factoring information on the World Wide Web

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Financial anything is a topic that sets us all on edge just thinking about it.  It seems to be secretive unless you know someone on the inside.  Factoring is a small part that makes little, or no sense, until after you’ve jumped the potholes, dodged the traffic, and made it to the other side, of three months into your facility.  That’s when the light bulb starts to go on and you can only decide if you’ve done the right thing.  But how do you start?

 

Factoring information on the World Wide Web

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Big year ahead for Factoring, Debtor Finance

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Big year ahead for Factoring, Debtor Finance

 

Big year ahead for Factoring, Debtor Finance

Most business owners are unsure of the government financial planning. And or the economic environment and their future over the next 12 months. Smaller business owners are finding it very difficult to find cash flow to balance their growth. Continue reading

Factoring the flexible business finance

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How it all starts.

Business owners in their first years of growth experience cash flow shortages. Young businesses often have many debtors past 14-30 days. This experience looks good in accounting systems. However its not in your bank.

Not having the ability to purchase more stock or put on more staff halts growth. Often owners purchase credit cards or even get secured overdrafts with their banks. This does fix a short term issue.

Factoring has Flexibility

Before we obtaining a facility you need outstanding debtors and invoices. Having more outstanding debtors gives you greater security with factoring. Generally you provide an invoice or batch of completed invoices to the financeir. After the lender has verify that the invoices are complete. Also been placed into the payment process. The financier will offer up to 80% of those invoices into your account. The final 20% of the invoices will be released to you once your debtors pay for them. Importantly as your business grows so does you facility. With this in mind most banking products become more expensive as they grow. In most cases factoring lenders fees reduce to remain competitive.

 

Factoring the flexible business finance

Invoice Discounting

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Big Business uses Invoice Discounting

Invoice Discounting is normally a bank product and not to be mistaken with Factoring.

Invoice Discounting is widely used in more established businesses that have a collection department, or administrative section. These businesses also have no need for a debtor finance lender to collect invoices on their behalf. Most businesses at this level don’t need all invoices debtor Financed and often use it as an overdraft system for purchases of stock or wages.
Invoice Discounting lets you draw up to 90% against your ledger when required. When factoring your invoices, they lend not against individual invoices which sets it apart from factoring. This factoring facility also gives you the ability to predetermine how much you want to draw down out of each ledger limiting interest costs.
Once the debtors pay for invoices, the Debtor Finance lender releases the final 20% less fees the next day into your business account. In most cases Invoice financiers have almost paperless procedures with a very simple on line system.

Security:

Banks often make this facility undisclosed / confidential to the debtors. If the accounts are well maintained only the lender and the financier are aware of this product occurring.

Invoice Discounting

 

If Invoice Discounting is what your business needs for Cash flow finance, then please contact Trade Debtor Finance Consultants Pty Ltd (TDFC). At TDFC our consultants discuss with you, pricing and lenders to suit your business needs. TDFC also offers and obligation free written quote. With up to four options to choose from, at no direct cost to your firm.  To learn more about industries that use factoring, click on the link.
Our website has 10 basic questions to ask lenders should you want to inquire yourself.
We offer advice about Factoring, Debtor Finance, and Trade Debtor Finance.

Debtor Finance Consultants Help Your Cash Flow.

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Are you letting your cash flow run dry?

Most businesses wait to bills or debts have added up and use Debtor Finance, Factoring, or Invoice Discounting as a last resort. Ultimately this is never easy to monitor or maintain as a large amount of your cash flow is used to catch up old debt. In over 50% of businesses, they say the Factoring funder is the cause of the plight of the company. A debtor finance consultant can help explain

 

How to use debtor finance properly

This is often not the case at all. If Invoice Discounting, Debtor FinanceFactoring, if used properly, in an effort to grow the business, the products success rate becomes over 90%. Cash Discounts or early payment discounts help offset the costs of the facility. Cash Flow increases productivity, helps promote more advertising, and could even help create more staff positions.

Using Cash flow for unpaid invoices being paid in 48 hours instead of waiting 48 days, also means putting extra staff on, creating more marketing and sales. It may also mean, purchasing a piece of machinery with the bulk payment, also creating more business.

This is the most important thing to remember. Invoice Discounting, Debtor Finance, or Factoring effect all businesses profit margin as it is a service cost. How this is absorbed into the business, depends on how the business uses the facility, and which facility it chooses.

Trade Debtor Finance Consultants Pty Ltd (TDFC) is made up of experienced consultants in all the debtor finance products. They know costs of each of the factoring facilities and have over 28 debtor finance lenders to choose from. Each debtor finance lender has different strengths and to suit different industries. Click here to see what Industries are suited to Factoring. TDFC also has single invoice funders, and can find Trade Finance that works in with Invoice Discounting.

Once call and TDFC helps you identify the products and Factoring lenders that will suit your needs. Contact Factoring Consultants for an obligation free, written quote at no direct cost to your firm.  Trade Debtor Finance Consultants Pty Ltd  or sales@tdfc.com.au

Debtor finance solutions helping us through tough times!

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Debtor finance solutions helping us through tough times!

Debtor finance solutions helping us through tough times!

Common Fact:

First of all Debtor Finance, Invoice Discounting, or Factoring is the only facility left that doesn’t require security and grows when you grow. Ask Trade Debtor Finance Consultants Pty Ltd (TDFC) what is Debtor Finance Today!!!

Bank loans and overdrafts will always be a better option, if you have security and time to set it up. While this is being completed many Businesses are undergoing a cash flow squeeze, caused by the late payment of invoices. Trade Finance is also a viable options to help ease cash flow.

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Need Factoring Finance? Can it be simple?

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Need Factoring Finance? Can it be simple?

Need finance for your business? Struggling to make ends meet? Are you pouring your own resources into your business to keep it alive?

When everything seems hard, Finance can be simple.  You just need to know which questions to ask. Continue reading