Trade Debtor Finance consultants Pty Ltd (TDFC) was contacted late last year by a transport company with 3 trucks with 2-3 debtors. This firm’s owners were quick to explain that a shortage of cash flow has caused a problem 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, but not our firm. TDFC we understand that Factoring comes off the profit margin of companies and in this case Transport, they are already running at low margins as it is. One break down in a truck erodes those margins away totally.
We were able to explain that they could get a no lock in solution to fix the immediate problem, however, 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 and get it with another debtor spreading risk. With excess to cash flow wages wouldn’t be a problem and by increasing work, slowly we can increase profits as were using the factoring companies money to do so.
This firm has developed the product and 6 months on has landed two more contracts and now has 5 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.
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.
Raising capital for new business’s is sometimes made easy by the banks. Maintaining cash flow through the growing faze of the business is a much harder problem to solve. Trade Debtor Finance Consultants (TDFC) specialises in finding products, such as Debtor Factoring, and lenders to help you through this part of your business strategy. Continue reading →
Factoring, Debtor Finance, Invoice Discounting, Invoice Funding is a reliable business finance product!
We cant have a money tree, try factoring for cash flow growth with Factoring
All businesses wish they could all have their own money tree. It’s just not that simple.
Debtor Finance, Factoring, Invoice Discounting have all been exploited in the past for all the wrong reasons. Robbing Cash flow to pay behind payments or bad debt experiences has often given businesses and factoring lenders a bad experience . For Example: what happens when the company gets into financial trouble and the costs of the lender add up, or the lender puts their funding on stop for whatever reason. 5/10 businesses in this position say the factoring lender caused their business to fail.
When it comes to responsibility of bad decisions: Who signed up for the facility, who knew the costs, and who had the previous debt or problem before factoring. The owner did. Whether the owner was explained the product and its structures fully, we at Trade Debtor Finance Consultants Pty Ltd (TDFC) will never know. Regardless of that, the owner holds all the cards and often an incorrect decision becomes a futile error in this cash flow finance product.
If the Finance facility is operated and maintained properly and is correct for your business, it works.
TDFC has experienced staff to help you monitor the factoring lender and product to avoid any mishaps. They also have a large network of professionals to assist your business with any scenario. TDFC stand by service and if we don’t know we will use those contacts and endeavor to find a solutions for you, to make the correct decision.
Businesses need cash flow.
Another big statement is: owners say that their cash flow is great, we don’t need to debtor finance.
If you business is in that situation, of course you wouldn’t get a finance product. WRONG. This are the ultimate reasons for Invoice Discounting. Funding your invoices in advance of waiting to be paid, gives you the opportunity to push your business limits. Having the opportunity through Factoring, will give owners the ability to grow faster and strong more rapidly without security. You can place factoring costs in new job quotations . If you have more stock or staff you have the potential of more sales and growth. More growth means more profits and greater buying power.
The main alternative to Invoice Discounting or Factoring is the banks and overdrafts. You can go for that overdraft or line of credit, but in most cases its fixed lending and doesn’t grow when you do. Cheaper yes, but no flexibility can cost you jobs. Also securities of banks, can cost you equipment, and often banks take ownership of your accounts. Anything goes wrong, they put it all on hold. Most businesses are unaware of the security or power a bank has until its too late.
Debtor Finance is often secured by the debtors. It can be disclosed or undisclosed. You can have debtor insurance to help eliminate bad debt. It can be selective, it can be fixed fee, there are so many other versions available.
TDFC explains all the benefits of factoring and Invoice Discounting. TDFC has over 28 lenders and numerous products for you to choose from. With one call TDFC experienced staff members help you find the product and lender to suit your business needs.
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.
Most Businesses have Cash flow. Unfortunately slower paying debtors squeezers funding.
If invoices are paid in 24 hours then we would not be speaking about Cashflow.
Factoring-Debtor Finance is a simple to use overdraft on your debtor book. The facility is secured by your debtor strength.
Trade Debtor Finance Consultants supports up to 28 lenders Australia wide. These Factoring-Debtor Finance lenders have a range of facilities. TDFC explain lenders and products that suit your business needs.
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.
The question of how to grow your business wealth is what all business owners will ask at some early point in the early stages of business potential growth. We see the potential on paper, but is it reflected in the bank account. When invoices are taking 30 or more days to be paid, we know that it could compromise your competitive edge. After all don’t they say “you need to have money to make money?” Continue reading →
Not all businesses suit debtor finance or Factoring. Some margins are just too tight to give away to a finance company. Never the less most of the time, margins are tight, due to the lack of stock or cash flow in the business to achieve the growth goals needed to turnover products and make more money. Some industries shouldn’t use debtor finance or factoring, however, with out cash flow they simply cant pay their fuel, wages, or other bills in the time frame. With out cash flow, the life blood of any business would dry up and cease. Not all debtor finance or Factoring products are easy to understand, or have simple costing. Financing your invoices, doesn’t mean they collect them. Doesn’t mean they chase them either. Its finance only.
Trade Debtor Finance Consultants, in one call puts all this to rest. We listen to your needs and at no direct cost to your firm, find up to 4 of the best solutions in front of you in writing. They also get the lenders on your side, helping them understand your situation. Trade Debtor Finance Consultants has hundreds of referrals and is a family based business. If you would like help or just better understand this product. Give us and obligation free call.
There is no better time to inquire about Factoring and how it can help your business grow. Therefore you have nothing to lose and everything to gain. It can start with a phone call for a chat, and end with an understanding of how products may work with your business. Continue reading →