Factoring, Debtor Finance, Invoice Discounting, Invoice Funding is a reliable business finance product!

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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.

For more information please contact TDFC today or visit our website www.tradedebtorfinance.com.au

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

Businesses need Cash flow for growth.

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Starting a new business or maintaining and established is very hard if you don”t have basic cash. Most business owners have the equity at first to sustain the basic growth in their business. This will often be way of property equity or basic cash.

During the first two years of business it would be vital to have a bank backed facility. However this is not often the case. Owners are forced to take loans or use up most of their equity in cash to survive.

Factoring, Debtor Finance, and or Invoice Discounting has always  been available for young growing businesses. Basically if you invoice other business clients and they have terms for payment. Then Factoring  of invoices could be an alternative to free up some of your cash for growth.

In general to factor and invoice is to offer that completed invoice to a finance company. They will offer a percentage of that invoice once verified to your bank. The debtor owing the invoice will pay the full invoice amount into the financiers account. Lastly the financier will release the rest of the invoice, less fees, to your bank. This will complete the transaction.

Depending on the facilities will depend on how many clients or invoices you wish to finance for growth.  Therefore the less you factor, the more the risk. The more risk the less the finance will finance. If there is high risk, pricing will also be high. Low risk you can negotiate lower fees.

Businesses need Cash flow for growth.

With over 15 years experience in these facilities, I ask one question. Why Guess? Our consultancy firm offers in writing a free quote. Consultants will explain your options and give you choice. Having experience in many facilities for a wide range of businesses will only aid you in whether it suite your needs or not. Our firm strives in helping you for the live of the loan chosen, should you agree with our lenders. Finally even after we have completed our quote, you still have a choice to say no.

Trade Debtor Finance Consultants is family owned and has place successful over 500 clients since 2010. This firm strives to offer clients the best explanation of these products and lenders available. If you would like to know more, please email accounts@tdfc.com.au or phone 0460 448 955

How Does Invoice Discounting Work

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How Does Invoice Discounting Work

How Does Invoice Discounting Work

Hence how does Invoice Discounting work is a common question. Discounting is a term commonly used in Banks, larger Factoring firms for clients with a turnover over 3-4 million a year. Invoice Discounting is funding of your debtor list. It is lending 80-90% of outstanding invoices on a day to day basis.

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