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? 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.
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 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 →