Christmas time can be an expensive time with presents, parties, guests and food.
Trade Debtor Finance Consultants spend this time sending out presents to our clients along with a lotto ticket for each one. That is how we would really love you to increase your cash flow. 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
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.
Reading a book about small business and there was an interesting section about this small business located in Sydney. In his experience with cash flow he writes about how it is important to be aware of your expenses in business. For example he shares his story on how he had more people owing him than what he was getting paid and he didn’t want to chase for his money. He had a pile of $200,00 worth of outstanding invoices. Later he went to the bank and took out a loan to pay his staff but the problem wasn’t solved. Peoples jobs and his business are on the line.
Businesses find cash flow solutions
The Arrow solution is like a bow and arrow together; the arrow gets stretched back. Until it is aimed at the target. Only then can it be let go. Being propelled to reach its target faster then what it would of with out the bow.
Debtor finance can be what will put your business cash flow back in shape. When you are being stretched to your limit its important have a cash flow solution. Trade Debtor Finance Consultants wants to see you and your business fly towards your goals and achieving your dreams for it.
Take the guess work out of finding your best cash flow solution and talk to a consultant today.
This is a very common question and why wouldn’t it be. Most business owners are worried that their bottom line will be taken away with no real benefits. Traditional lending is much cheaper, however, traditional lenders normally secure properties or directors as a safety.
Debtor Finance is more experience, but it only secures the debtors. Its fees and chargers are priced so that lenders can supply a range of things.
1. conduct credit searches on existing and future debtors
2. Maintain alerts to try to avoid future bad debts
3. Assist in the back end procedures of collection and payments.
4. To verify invoices are complete, stock received etc.. this eliminates 90% of the excuses of non payment.
5. Set credit limits, show online systems, which provides information about your facility.
6. Provide a human as a credit manager, who you can liaise with and address issues.
The list goes on. Some ask how much does this cost. Well each lender sets different fees for the appropriate services. Some businesses don’t need assistance with any of the above, that would mean they would get a much cheaper facility, however, should anything go wrong, they must realise that the lender will have to take appropriate actions to assist.
Factoring and Debtor Finance Explained by experts
This may seem complicated to most. However Trade Debtor Finance Consultants has been providing businesses now for over 10, with experienced staff to assist you with the explanation of these products. Trade Debtor Finance will offer each client a free written quote to choose up to 4 lenders which will suit their current business leads. Again no obligation to go with any of those lenders if chosen.
Trade Debtor Finance has up to 28 lenders to choose from, each business has different needs, try us out and see what you think. For more information please go to our site and explore.