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. Business finance factoring is a possible solution.
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 financier. 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. Another name for Factoring product is Debtor Finance.
They all range depending on the size of your company. They also are determined by the strength of our accounts parables and the time your invoices get paid. Our consultants will guide your firm through this process.
Factoring the flexible business finance
Trade Debtor Finance consultants offers an obligation free written quote. In this quote we explain factoring options and facilities. One call can change it all for your business. Our consultants will guide your business through the set up and running of the facility of choice. Again at no cost to your firm. Our firm strives for success and will help you deal with any situation. For more information please contact our firm or email your inquiry to email@example.com
Trade Debtor Finance Consultants Pty Ltd (TDFC) is a business that was set up as the first of its kind in Queensland. As a result offer no nonsense answers about these products. With over 28 lenders in Debtor Finance and 9 factoring products to choose from. TDFC consultants explain, setup, monitor, and service your factoring needs. Furthermore liaising with lenders for the life of the deal with this Invoice Discounting product.
Factoring / Invoice Discounting is a finance facility that advance cash flow on invoices. This service allows up to 80% funding in your businesses cash flow instead of waiting the terms to be paid. Imagine getting 80% of your funds in 48 hours to pay wages. Even more pay for stock in advance, get bills paid on time, or hire those extra workers. More sales means more profit, more staff means more sales, less expenses means greater profits. All these can be achieved by utilising this factoring product.
TDFC consultants explain and show your business the way to achieve this. For a small fee you can get access to your cash and grow your business to the next level. As well have a TDFC consultant guide you through the whole process. TDFC also can explain a trade finance product which will work in conjunction with a Debtor Finance facility.
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? So you need help with Cashflow Finance?
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?
Factoring, Debtor Finance, Invoice Discounting Consultants in Australia.
Factoring,Debtor Finance,Invoice Discounting Consultants in Australia.
Why Debtor Finance works.
Accountants, brokers, business coaches are never sure if a debtor finance product will work or not for your business. As a result they state it’s too expensive. Others say it’s simple, put your invoices in and get paid up to 80% of their value with 48 hours. The final 20% less fees is paid when your debtor pays for the invoice. there are two alternatives to poor cash flow. One is going broke waiting for debtors to pay. 2nd is demand for faster payment, hoping you don’t loose the contracts.
Trade Debtor Finance consultants Pty Ltd (TDFC) was contacted late last year by a transport companies, In most cases they had 3 trucks with 2-3 debtors. This firm’s owners were quick to explain that a shortage of cash flow has caused a problem. No cash means issues with a fuel bill and that it was causing work to slow down.
Typical introducers would just give them a few lenders in an effort to sign them up. Not our firm. TDFC we understand that Factoring comes off the profit margin of companies. Transport margins are very competitive and often tight. One break down in a truck erodes those margins away totally.
We explain Factoring.
Our consultants explain that they could get a no lock in solution to fix the immediate problem. In some cases this would be costly and that if they could sustain a more lock in solution, they could develop a plan going forward.
One simple question? What can you do with the company once you’re back on top of your cash flow issues and have money in the bank. Get another truck into work was the consensus. Start it working with another debtor spreading risk. With excess to cash flow, wages wouldn’t be a problem. As work increases, you can increase profits as were using the factoring companies money to do so.
It has been proven that within 6 months, companies have landed contracts and if required more trucks. Yes, they have a lot more money and profits, however, they also have a growing business with much more strain on themselves. Another situation that TDFC will advise on as they need help with infrastructure.
Transport Using Factoring
Would you like to know more about Factoring, DO’s and DON’Ts and what you can do to use this product to your benefit? Please contact TDFC today for an obligation free quote in writing. Go to debtor Finance Questions and Answers.
Trade Debtor Finance Consultants would like to reveal some facts about Debtor Financing or factoring versus Overdraft Facilities. Price: 1.Overdrafts. There is no doubt that a commercial loan from a bank will be cheaper from any non bank lender. Continue reading →
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 →
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.
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.
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.