Should I use factoring, or shouldn’t I. Debtor Finance is a product that was created to help stretch your cash flow in the sticky times.
For example: Slow paying debtors. Creditors who demand payment. Purchasing stock or equipment. Recruiting more staff. Wages paid weekly. Also having to pay any tax arrears, or just piece of mind. Continue reading
Factoring & Debtor Finance explained.
Factoring by explanation means you provide completed invoices into a financier and get paid a percentage of that invoice in 48 hours not 48 days. Also not to be confused with Invoice Discounting.
This is how Debtor Finance works. You submit invoices and the lender verifies the work is complete, delivered etc. Once this has occurred you will be advanced up to 80% of the outstanding invoices into your bank account. Due to increases in your Cashflow, it will gives your company the ability to purchase stock or pay bills ahead of schedule. It may also possibly create discounts and offsetting the finance cost.
Once the invoices are being paid for, your debtor will pay the full amount into the lenders account. The lender receipts the invoice, taking out amount borrowed plus a fee and gives you back your final 20%.
$1000.00 (Factored) you get $800.00 in 48 hours of verification. Debtor pays $1000.00 to lender and they take out $800.00. You get final $200.00 less lender fee.
Most lenders vary slightly in fee setups. However Factoring normally involves a credit department, collection department, and some form of account management.
Due to the level of service offered, business will have to expect a service fee. Upfront fees are charged between 2-4%. This is sometimes called administration, service, or management fee. In addition, the secondary charge is interest. This taken out of the remainder of invoices less the lenders fees.
The amount you draw or borrow times by the number of days outstanding. Depending on the lender and its borrow costs from a bank, determines your interest rate charged.
Trade Debtor Finance Consultants Pty Ltd (TDFC) consultants are fully aware of lenders rates and fee structures.
Most noteworthy, is that if we don’t know the answers, we find out. Therefore for a full explanation of Factoring give a TDFC consultant a call. In conclusion TDFC stand by our service provided.
Contact Factoring Consultants today www.tradedebtorfinance.com.au sales@tdfc.com.au
What do banks need to ascertain finance for businesses?
1. Must have two year financials
2. Overdrafts and or Business loans must have property or assets
3. Directors with assets are desired giving personal guarantees strength
4. Director must have clean credit files
5. Business Tax must be up to date
So what happens if you don’t tick all these boxes? Do you go to non tier lenders paying larger interest rates, sacrificing profits margins? Finally how do you get the money back fast to save on that interest?
Consultation explains both sides of the answer. Clients know their business. Consults know the products. Working together often finds the right answers.
Our consultants are not bias. This firm offers the best products and lenders to suit your needs.
Statics released from DIFA media release showed that Debtor Finance or Factoring is back on track and growing rapidly in Australia. These findings show that business owners are taking advantage of this type of facility to grow their businesses.
In Australia with the change in Government, new businesses are at their highest figures in years. Great thing about Factoring, they finance most Industries.
Debtor Finance has been a finance facility well used by small to medium business. 50 lenders Australia wide, with a range of different products to choose from. Debtor Finance is lending up to 80% of the outstanding invoices in your debtor book, giving you access to Cashflow you would be otherwise waiting for. The remainder of your invoice is paid to you or offset to you, once your client pays for his service. Continue reading
It was created to help other businesses find the right products that suit their needs. In the beginning, TDFC was thought to be a silly idea. It now has helped many businesses find the right debtor finance products. We are personal and professional. Over the years our clients have became friends. So in turn, we would like to share whats happening in our world
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The day passed by so quickly. It was overall an amazing day. The weather was perfect and at the same time the River Fire was in rehearsal. As we traveled to the chapel we had jets flying close to the ground above us. This made the whole experience of traveling to the ceremony less nerve racking and more exciting. I arrived at the chapel and the ceremony was great. The bridal party looked amazing with their purple dresses and cool suits. There was a lot of nerves, few tears, but mostly love. I can say nothing makes you more happy then marrying the love of your life and seeing people really come together to support.
after photos, and a few hiccups on our return. the reception was were we all decided to dance and enjoy what the day is truly about. The friends and family who pitched in to put up lights, set up tables, play the music, decorate the room, and manage the details made the day what it was. Afterwards there was a visit to hospital to see Nan who recently had a fall and was unable to attend. She was over the moon and very proud.
It was a terrific day and now TDFC is back into all things debtor finance again. If you’re in need of advice and a quote then call TDFC. We are here to support you and your goals for your business to grow. We are a free service to you because we care about providing you with solutions that solve your financial problems.
Trade Debtor Finance Consultants have been helping businesses with their business finance. Rather than more loans, overdrafts or borrowing to survive. TDFC has been offering cash flow solutions. What can hurt a business is waiting for a finished product/ service to be paid in 30+ days. That is a long time for a business to pay expenses without that income. This type of finance that TDFC specializes in gets businesses out of sticky situations.
Many businesses use TDFC from industries such as;
There is no minimum amount of time you need to be trading for. As long as your business is trading.
If this is something your business needs then call us now 1300 00 8332. Email us at accounts@tdfc.com.au or start an online quote. We want to help and we guarantee to put you on the right track when it comes to choosing the right finance product for your business.
There are many skills that leaders need to know about and learn to do. In the times where everything needs to be done yesterday. Its important to learn how to manage ourselves and others in these times. This is the art called delegation. It’s easy to create to do lists that we work through and then still feel like nothing actually got done. There comes a point when you as a leader need to prioritize your time and leave the rest to your awesome team.