Debtor Finance is a product designed to help business with cash flow only. Its not a debt collection service or a service.
Debtor Finance also know as Factoring or Invoice Discounting helps business owners take advantage of their debtors paying in 30-60-90 days. Financiers advance up to 80% of those invoices in advance, giving business owners the chance to purchase, or stock, or pay bills on time.
This gives owners piece of mind and often a growth opportunity depending which industry they are in. Of course it comes at a cost and knowing this, those owners who have slim margins, are not always suited to these products.
Lenders make money, they all operate that way, how much depends on your facility etc.. Trade Debtor Finance Consultants has built a large reputation around this, by offering a free obligation quote, giving business owners needing factoring up to four option in writing.
Our consultants go over the good and bad aspects of Invoice Discounting, Debtor Finance, and Factoring so you fully understand the pricing and structures of each facility. To know more, take a look at our website www.tradedebtorfinance.com.au or email our office at firstname.lastname@example.org . Our toll free number is 1300 00 8332
Not all businesses suit debtor finance, Factoring, or Invoice Discounting. 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.
Trade Debtor Finance Consultants has been successfully trading as a Factoring, Debtor Finance Consultancy firm for 6 years. Our staff are happy with all its achievements. We would like to thank our clients old and new, for without them, we just wouldn’t be known to many.
Our firm operates out of a Brisbane base, servicing Australia wide. We try to get facility for all types of business. New Business start-up, Transport, Manufacturing, Importing, Labour Hire, Exporting, and Retail. In most cases offer up to four options, as no direct cost to the client. Trade Debtor Finance Consultants has the support of 28 lenders and with a range of new products on offer.
One call is all it takes, we find solutions, set you up with the interviews, and give you all the information you need to make the best decision for yourselves and your firm.
Call us today to find out more. 1300 00 8332
The most common business finance product is and overdraft. Often secured by the directors and unless the business is in top shape, secured by assets as well. It is the cheapest and most used funding for a business. However, it is a not the most flexible. If a business grows, then the bank overdraft takes time to do the same. Often frustration from clients as it clearly doesn’t grow with them.
Line of credit offsets against business assets. Very good on pricing and easily controlled by the client. Big risks if the business decision goes bad as it affects assets. Again it hasn’t got the flexibility in most cases, as you only have credit to the value of the assets on offer.
Factoring of invoices. Funding is reasonable in most cases on pricing. Cost of funding is off your profit margin, so you have to have plans in place to make this worthwhile. Not a good idea to factor to just get in front on some bills. Factoring is very flexible and will grow with your business plans, as your invoicing grows. Important to remember as you grow, you facility grows, you actually pay less for funds the bigger you are, but the lender wins either way.
Loans. Not widely used as its limited and the cost of funds is high. Business owners need to have plans to get such funding, so the others above will get better results. However if you don’t have invoices, and looking to buy stock its still a good way of doing business.
Most companies think when factoring their invoices they are giving away the debt to a lender and they will purchase and chase that debt themselves. This is far from the truth. Factoring companies do receivable finance, purchasing invoices and funding a percentage of them to you within 24-48 hours of verification. The balance of the invoice is funding, when the debtor pays the full account to the lender.
So if you have $10 000 dollars of outstanding invoices, if the whole book has been verified and completed you can have up to $7-8 000 dollars in your bank in 24-48 hours. The final 2-3 000 dollars will be paid to you once the debtor pays their account.
Invoice Funding has different fees, so its important to know what turnover you will be doing in the next 12 months, also the debt turn, (amount of time the average clients take to pay 30 days etc.). This with a combination of how good the back end procedures are in your firm, will determine how much your fees will be.
For more information about Account Factoring or Receivable business loans, be sure to call our office. Trade Debtor Finance Consultants Pty Ltd or email email@example.com
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.
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?
Trade Debtor Finance Consultants supports Factoring. If you invoice and credits take 30-60-90 days to be paid, then use those assets to fund cash flow. You can offer up those debtors and get funding on completed work (up to 80% of the invoice value) within 24-48 hours. You get the rest of the value of those invoices (final 20% less fees) when the debtor pays the lenders account. Don’t get confused they are not debt collectors. They are financiers trying to make money.
Our firm finds the best lenders and puts them in front of your business. We build a plan to get your cash flow moving and a plan so that those fees don’t impact your bottom line for long.
To find more please go to our website www.tradedebtorfinance.com.au or email firstname.lastname@example.org
Trade Debtor Finance Consultants Pty Ltd (TDFC) has been providing expert help with Factoring and Invoice Discounting products for the last 5 years. TDFC has settled over 600 deals in that time and has seen almost every industry and type of business there is. Also in that time, we have established connections with the very best lenders in the country.
With one call a consultant will help you understand the product, help you understand the pricing, understand the dos and don’ts and help you make a plan going forward into the future.
Factoring is a lethal product if used the wrong way and can single handed ruin a business. However, if used correctly and a steady plan is made, then this product can help your business grow with minimal security offered.
Not only does TDFC want you to better understand the products, the lenders, and the pricing, we stand behind this by offering it in writing to your firm with recommendations and why we chose those lenders.
For more information you can go to your website, www.tradedebtorfinance.com.au or contact us today by 1300 00 8332.
Our family owned and operated business looks forward to your call.
Accountants, brokers, business coaches are never sure if this product will work or not for your business and say it’s too expensive. Others say it’s simple, put your invoices in and get paid cash for them. Most say never use them as they will send you broke.
1. Do Finance facilities really send your firm broke?
2. Is this product too expensive, or can you really afford it?
3. Will it help you grow with minimal security?
4. Is there more than one recommended lender out there for you to choose from?
People who don’t know about this products should say nothing and leave it to the experts.
With over 14 years’ experience, and started up our own business with nothing, giving advice about these products only, we should know.
There are over 50 lenders Australia wide with a wide range of facilities and products. Our job is to understand most of them and let clients know, their positives and negatives in one call.
Pricing is determined on the lender itself. Larger lenders have greater borrowing capacities, other than private smaller lenders. With this in mind facilities are different. Smaller lenders have much more to lose, and are very hands on in checking invoices etc.. This makes their facilities more expensive. Larger lenders have larger more sophisticated clients, and there is less admin involved, making facilities cheaper.
Contracts and securities are determined by the size of the client and strength of the debtors.
In conclusion, why guess what is for you. Trade Debtor Finance Consultants Pty Ltd has no direct upfront cost, and we offer our findings in a written quote. One call and you can have up to 4 options to choose from. These options will be the best solutions we put forward to suit your firm. There is no obligation, so google and interview others if you feel the need too.
Trade Debtor Finance Consultants Pty Ltd are so confident of our introduction’s, that if you proceed with any of our lenders we will give you support for the life of the loan again at no charge to your firm. You can find us www.tradedebtorfinance.com.au or email email@example.com or contact our friendly staff 1300 00 8332.
Trade Debtor Finance Consultants is a family owned business that strives to be the best in this field for you.
Often business owners have a great idea, and have some equity to get that idea started. Often 1-6 months into their reality they hit a brick wall. Most common issues are: 1. Business Cash flow 2. Time. I believe if Business Cash flow is fixed then it will free up time. Most owners will agree as with cash, they can employ more staff, purchase more up to date equipment, and improve marketing. Businesses often use up their number one asset first (their cash) before seeking help with the banks or other private lenders. This is a big mistake. Business owners can take advantage of factoring, or invoice discounting and keep their cash in the bank, should things go wrong. They can also take advantage of trade finance, Over drafts, Line of credit funding as well, thus keeping the cash they have as a back up. We at Trade Debtor Finance Consultants are a family business, and for the price of a call can place you in the right direction, with a range of products, lenders, and brokers. We are not only here to help you with our products, but want to help owners with a range of different products to help your business grow to your expectations. Pass the word, as we cant compete against lenders marketing moneys, from Transport to large business, Trade Debtor Finance Consultants is at no direct cost your business. Give us a go and find out.
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 business. In Australia with the change in Government, new businesses are at their highest figures in years. Great thing about Factoring, they do most Industries. New business owners are setting factoring facilities up early in the business career, so that they keep more capital at hand to deal with different situations that may occur.
Debtor Finance gives business owners the chance to fund invoice and use those invoices as a line of credit, drawing a percentage of the value upfront on completion. Once the invoice is paid, the lender would take off the borrowing and pass on the final amounts to the clients less fees. Factoring gives the owners flexibility going forward. As the business grows so does the facility. This allows owners to access to more cash as it cements itself in its industry.
Using Factoring also helps business with back end procedures. Smaller businesses may not be able to afford collection staff in the juvenile state. Debtor Financiers have staff that verify completion of work, establish payment dates, and liaise with owners when those dates are overdue. Owners then can focus on their business, not in there business.
Factoring also provides credit checks on new debtors. Although not a fail safe solution, Factoring companies can give a heads up to bad debts. Factoring firms also pre determines credit limits from those searches, helping owners make decisions with exposures. It is important to understand Factoring Companies are lenders. They offer these extra services to protect themselves and the client from a bad credit situation. Factoring is there to help you finance your business and nothing else. The rest is up to owner to maintain.
Trade Debtor Finance Consultants is here to assist you in picking the right Factoring company to suit your needs. We offer an obligation free quote in writing and provide up to 4 lenders to choose from. Our firm explains everything you will need to know about these products and pricing and will stand by your firm for the life of the loan chosen. For more information please call us 1300 00 8332 or email firstname.lastname@example.org or go to the website and make an Inquiry.
Do you have debtors that you don’t want to know you’re factoring?
Don’t want the hassle of normal factoring?
Only have a couple of debtors and only want to Invoice Discount one of them?
These are the questions being asked of our firm of late. Line of Credit funding your debtors ledger is simple. You offer up all your invoices, the lender approves an agreed amount of funding, and the debtors pay into a trust account.
You can access a revolving amount of cash flow when you need it. Interest is reasonable, however, flexibility is the key. No following up the debtors on payments, no annoying verification letters.
Here at Trade Debtor Finance Consultants (TDFC) we have noticed a large increase in lenders providing a line of credit on invoice facilities. Standard factoring offers up to 80% funding on invoices with the balance being paid when they get paid less any fees or charges. Line of credit facilities offer less of percentage, but a revolving line of credit on invoices each month. This is less messy and easier to accommodate. However, it is often more expensive as it’s more risky to the lenders.
If you have debtors that don’t like being contacted, and you have a turnover of less than 1.5 million per annum, then it’s worth taking a look at.
Trade Debtor Finance Consultants has an ever increasing number of lenders who offer this product. As stating when offering advices around these factoring facilities, we would offer a combination of lenders so you the client get a choice to choose from. This is part of our no upfront, obligation free quoting in writing.
So if your business needs some added cashflow, may not be asset rich as the banks like, we at TDFC will offer you some great lenders and try and get the best price and facility to suit your business needs.
Further information please email Sales@tdfc.com.au or www.tradedebtorfinacne.com.au
Our family owned business, look forward to your call.
Most business owners want to know about Factoring Lenders and their products. All consultants at Trade Debtor Finance Consultants are fully trained and can explain all the products and their workings, as well as give you choices of up to 28 lenders in Australia. One call and you receive an obligation free quote with up to 4 choices in writing. Find out today call 1300 00 8332
Trade Debtor Finance Consultants is offering at no direct cost to business owners, free reviews of all its lenders.
Trade Debtor Finance Consultants proudly supports a wide range of lenders in the industry. Every Client that our firm interviews, we use expert knowledge and find the lenders that suit their needs.
This is not an easy task as each lender has different facilities, different products, and different pricing on offer.
How do you know you have the right deal?
Basically you don’t. Why Guess. Speak to a consultant today and see if we can help you get some piece of mind in choosing the best lender for your business. We know Invoice funding.
It’s a new year at Trade Debtor Finance Consultants and our small but growing Family owned business is alive with calls from new clients.
One of the first questions they ask, ‘are you brokers or consultants?’
Often with Factoring or Debtor Finance you need to know how this type of finance works. Often you get told a general idea, and giving a lender to call, this of course will be billed to your firm for such advice.
So if you were given a full run down of the facilities, and the different types that would suit your needs, and given a choice of 4 different lenders in writing, and supported for the life of the loan at no direct cost to you. What would you say? Consultant or Broker?
Here at Trade Debtor Finance Consultants Pty Ltd, we try and give the best to each and every inquiry we ascertain. Sometimes we just can’t help people, other times we have too many choices. No matter what happens, we offer the best service in the industry and are recognised by up to 28 lenders Australia wide.
for more information about Factoring, Debtor Finance, Invoice Discounting, or Trade Finance, call us today 1300 00 8332.
Trade Debtor Finance Consultants wishes all its current clients, and all in Business a happy new prosperous new year. Business owners in all industries, Trade Debtor Finance consultants is here to help you with information about invoice finance and or Factoring.
Our firm offers support and explanation about Debtor Finance at no direct cost to your business and we give no nonsense answers.
Trade Debtor Finance Consultants stands by its recommendations by putting it in writing with explanations of why we choose those products and lenders. This is not often provided by many other consultants.
So if you would like to know more, and make those business resolutions possible, then call Trade Debtor Consultants today and get some real expert advice around Invoice Discounting.
Often businesses are unhappy with their existing lender for one reason or another. Collections, lack of service, too hard to understand, the client manager keeps changing, or they simply don’t move as your firm changes direction or grows.
I would like a dollar for every client who would state the above answers. Debtor Finance lenders offer a range of products. Often the one offered to your firm, was the one you asked for. It may have not always been the best one that suits you.
Debtor finance lenders have bills to pay also, so they will try and get you what you want, but in the end, they also will have costing and securities that suit their needs.
Trade Debtor Finance Consultants offers all this information at no direct cost to your firm, as well as support for the life of the loan, again at no cost. It is our goal to change the stigma around this finance product.
Yes it is more expensive than traditional lending, but it is the least secured, it grows with your firm, also giving your backend procedures strength. This is with work completed, and the collections of invoices. Most lenders have file notes, as well as your own firm. So with this in mind, it will help keep bad debts to a minimum.
If you’re in a product and you would like a fine tune, or perhaps it wasn’t explained to your firm fully. Please give us a call, we would be glad to try and assist where we can.
For more information, please email our staff email@example.com
Topics: Cash Flow, Cashflow Finance, Line of Credit funding, Receivable Finance, Single Invoice Factoring, Trade Finance | Comments Off on Which Debtor Finance Lender Suits Your Business Or Do You Need A New One?
Trade Debtor Finance Consultants was created to help small to medium businesses better understand Invoice Discounting by offering all the information about each of the lenders out there at no direct cost. In today’s markets, our firm is doing its best to get businesses out of products that don’t suit their business. In most cases they were sold by a salesman, and after the deal settled this person was gone.
I would understand if the accountant states ‘go with this company’ I would also understand if your product profits are lean, so your governed by price, in which makes you look only at the banks.
Other than that, if you qualify for this product, then you have such a big choice of lenders out there. Wouldn’t your decision makers like to have choice? Wouldn’t those same decision makers like to know they have crossed every t?
Trade Debtor Finance offers this choice and support. We find the lenders and get them in front of you. We also assist your firm and staff, better understand these products.
Here is a couple of things, I bet you didn’t know… If an Invoice Discounting lender feels at risk, at anytime they can turn a confidential product into a disclosed product and contact your debtors immediately to collect out. If it’s a bank product, they can hold your trading account and freeze all income. There are lots of rules to understand.
Please don’t guess. Use our consultants who are trained and very knowledgeable about these products, lenders and fees. One call or email and we will guide you through everything. firstname.lastname@example.org
Trade Debtor Finance Consultants the Invoice Discounting experts.
Topics: Invoice Finance | Comments Off on Have You The Right Invoice Discounting Lenders For Your Business?
You have a business and your debtors take 30-60 days to pay. It’s not unusual as all the figures in collections show an average of 55 days. This cash is yours, but you don’t get it until your clients pay.
Your cash flow is on hold as these clients are using your firm as a bank. How can you grow your business with little money or cash flow to get those new clients?
Simple, Invoice Financing. Finance those unpaid debtors and get up to 80% of the funds within 24-48 hours of the invoice being verified. You get the final 20% once the debtor pays the lender less fees. This cash flow injection will assist in wages, purchasing of stock, ascertaining new equipment etc… Ascertaining this money now, is something you can’t be waiting for 30-60 days.
This has an obvious cost. Things to remember, these costs are off your bottom line. So it’s important to have a strategy in place to use those funds to grow your business. If you double your size, then the costs are not as important anymore.
Trade Debtor Finance Consultants has been providing small to medium businesses all the information they need about Invoice Financing. Our firm offers all its recommendations in writing and have many references.
For the first time in many years, people in general can take an opportunity of a low interest rate and low dollar. When our Dollar was high, most Australians took advantage of this by travelling. Great for the family, but our money was spent overseas. Thus our tourism suffered, our retailers, no movies where made here, etc. Now the dollar has slumped.
This is great news for business. Our Business community can finally compete on a global scale again. For business owners, new and existing, means that they can buy more stock, produce more goods, and quickly take advantage of the market. So you look at your cashflow, and you have none. You have been selling to clients, good and bad, to make ends meet.
Now you have a debtors ledger that is aging and you can’t take advantage of purchasing stock. Some would say borrow against your house, get those line of credit loans, get an overdraft, borrow from anywhere. That is great if you can, but in most cases, you have already to survive the market.
Trade Debtor Finance Consultants has the solution. Trade Finance and Debtor Finance products. Factoring or Invoice Discounting has been around for a while. Our firm strives to fit you to the facility, not the facility to you. We give you choices, and offer it, with an obligation free quote. Low interest means that Factoring costs are coming down.
Take advantage, get access to your cash outstanding, and purchase goods, or hire staff, or buy equipment, so that your business is not left stagnant. There are more and more factoring lenders in the country. This is great for business, more lenders, more products to choose from, more chances of getting a facility that is right for you.
For the last 3 years manufacturing has been stagnant. High Australian dollar values have caused our industry to the world as non competitive.
With relief our dollar has slowly fallen and here we go, manufacturing and importing clients have finally something to smile about. Once again we can compete at world level. However, due to lack of business for the down period, many have succumbed to cash flow issues.
Don’t stumble at the blocks. Trade Debtor Finance Consultants can help you find solutions that are not only cost effective, but will suit your business needs. Trade Finance is very popular, but unless you have property and very sound credentials, then it will be unlikely.
Trade Debtor Finance has been able to convince a selective group of lenders, that with Factoring or Debtor Finance, they can offer a Trade Finance product. So for the first time, we have been able to give options around Trade Finance.
Please don’t wait, call us now, and organise an obligation free quote. See how these two products can help your growth now, and into the future.
Business owners have been asking this question a lot lately. Banks showing record profits in a Global Financial Crisis has caused some anger amongst the business community. The reason for this is simple. Banks are securing up good debt. If you’re a client, who has a few issues then they are not interested, plain and simple. Banks are undervaluing properties to inflate security, profits and shares.
So the traditional lending has become much harder to obtain. So why not look at Invoice Discounting. Larger businesses can cashflow finance their business, and grow without personal security being used. Banks like this product, as they take control of your trading accounts, which they start moving into your personal accounts as well. In the end, they take control over everything. That’s when it all starts to go wrong, the moment something bad happens.
So move, to non bank products. Pay a little more, but get control back. These non bank lenders are not interested in your other products. All they care about is your invoices. By getting control of your trading accounts again, you can again make a range of decisions. In most circumstances, these companies have some flexibility to their factoring product. This is so important in business, as we all know, things change.
Debtor Finance is a product that grows with your firm. Depending on the type of product chosen, will depend on the level of involvement the factoring firm has in your business. As stated, Invoice Discounting is offered by the banks, as its Confidential and they like no involvement in your business. However, they request monthly reconciliations, lengthy paperwork, and audits to maintain this facility, as well as seeing your trading account daily, in which if something goes wrong, they can hold.
In the end the decision to pay cheaper prices and go to a bank is up to you. All Trade Debtor Finance Consultants can do, is offer you a range of different lenders so you can make an informative decision. Our quote comes to you at no direct cost to your firm. It will receive very experienced guidance, and will support you for the life of the loan chosen. For more information go to www.tradedebtorfinance.com.au or email email@example.com
The thing is, YOU ARE NOT ALONE!!
Often the wrong factoring facility causes stress. It stops you working on your business and gets you working back in it, trying to fix up issues.
Don’t despair, it can be fixed.
Maybe it wasn’t explained properly and the salesman that sold it to you, forgot to mention some key issues. Either way, you need to start going forward again. So what do you do?
Do you continue on struggling, being frustrated until your term runs out? Or you pay a break free and leave? That’s not why, you took up Invoice Funding.
Trade Debtor Finance Consultants is willing to help. Give us a call, we can offer you some advice, help your business understand why the lender is doing what they’re doing. Help your business try and sort out the issues. Maybe even move you to a more capable facility suited to your business.
Best of all we offer this for no cost to your firm. Trade Debtor Finance Consultants wants to help businesses in Factoring. We as a firm have been supported tremendously by the Australian Business, so we want to give some of our time back to help those in need. One call, privacy act signed, all remains confidential, and we will try and sort the issues. Often Bank products, don’t have the flexibility for most firms. Yes they are cheap, but often they don’t move with the business’s growth. Simple exposure issues, outside terms, etc. are enough to cause a facility to go wrong. Is this You?
If you’re an Australian business, that has a factoring product, and would like some help better understand that product, or help with trying to make it work better, then give our office a call. We want to help your firm to get the best out of the product. For more information, call 1300 00 8332 or email firstname.lastname@example.org
Debtor Finance, Factoring, Invoice Discounting are not all the same product. So how can the collections on these facilities be the same.
The simple answer is “yes”, Factoring does effect your collections. However, most of them are hoping that they don’t pay on time, and they can make additional fees.
With nearly 45 factoring lenders in the industry, each has a different collection strategy. This will depend on your size, your exposure, and of course the type of facility you have. If you have a facility where there is a daily interest added to your fee, then it would be reasonable to assume, the level of collection would be lower than a firm with a set fee.
Bank products often do no collections as they are a confidential product, allowing the client to maintain all those procedures as the bank has access to the trading account to monitor. Smaller lenders don’t have that luxury and whether its disclosed or not, the client has to maintain constant checks to ensure that their accounts are up to date and their not incurring added interest or late fees.
Disclosed lenders, often put out statements, and will verify a percentage of the invoices, this acts as deterrent in most cases for the slack paying clients. Also seeing a financial firm on the bottom of the invoice, often makes clients avoid any nasty stuff come pay day.
However, conflict will often start if the debtor goes beyond terms, and its a large piece of your ledger. Factoring firms, will put other invoices on hold, and do some heavy collection calls to avoid there being a bad debt. So please stay on top of your accounts when factoring.
For more information in regards to the different facilities, please call our office on 1300 00 8332 or email: email@example.com
Trade Debtor Finance supports up to 28 lenders in Australia and each facility is different. At no direct cost to your firm, we offer our recommendations in writing, and we support your firm for the life of the loan.
Often clients call up for stock finance. This product is not impossible to get. However, if your business hasn’t a sound foundation, like two years financials, strong accounting documentation, and the directors have assets, then your chances diminish greatly.
So let’s look at it from a different perspective. Most Business owners have debtors. In most cases they state to their clients, place in a deposit, then the balance when it arrives. Often it’s the gap from manufacturing, until arriving in Australia, is the reason for asking for Trade Finance.
What if the lender, pays out the supplier, once goods arrive, guaranteed? Or what if the lender pays for the stock, Freight on Board giving you something to think about now? And what if the lender funds all invoices, providing Invoice Finance (Factoring) on those with terms, giving your business the buying power you need to grow?
All it takes is some planning, and your business can do just this. Invoices are a very powerful asset to your business. In our experience, it takes baby steps to get started, but once the Invoice Finance is full pace, the need for Trade diminishes and more profits are in your front end. If you can negotiate with the lender to guarantee paying out the supplier, then you’re on your way to growing.
Trade Debtor Finance Consultants has the knowledge, and with up to 28 Debtor Finance lenders in the industry, has the contacts to try and get an answer for every scenario. Best of all we offer this advice at no direct cost to your firm. So if you’re in importing, and would like to make an inquiry today about growing your business, what do you have to lose by contacting us? We put our quotes in writing, and we also support you for the life of the loan, at no direct cost. For more information call 1300 00 8332 or email: firstname.lastname@example.org
Business owners, make so many decisions every day. Which road to take. Often this is restricted by the amount of cash flow, or how much is outstanding in their receivables. When you don’t have cash flow your road comes to a big halt.
Business owners, can only grow their business by two ways when it comes to money. 1. Borrow it themselves against assets, or loan it from lenders who will secure against your personal assets. So let’s borrow against your assets your invoices, (Invoice Finance).
The average debt turnaround in Australia is 55 days. So for nearly two months, business owners are providing credit to their clients. While this is happening, your bills are climbing, your interest on your loans is adding up, and your on going costs are mounting, (Wages, commissions, fuel etc.). Not to mention you’re at a stand still, not growing and or struggling to purchase stock.
Get some cash flow moving again. Start with Invoice Finance or Factoring. These lenders finance invoices, not debt collection. They are here to fund up to 80% of your invoices now, giving you the balance, once your client pays their account. Stop providing your clients with a bank account, start using your money to grow your business.
Whether it its a long term strategy or a quick fix, financing invoices will get your road clear and moving forward.
Trade Debtor Finance Consultants supports 28 lenders and with that knowledge can guide you in the right direction. Don’t guess with Debtor Finance, one call and we will explain everything. Best of all its a no direct cost to your firm, and we offer our advice in writing. Please contact us via email: email@example.com or 1300 00 8332.
In the recent months, Trade Debtor Finance Consultants has received many calls about these products and often confused by the two. Invoice Discounting is a very clean often confidential product. What they don’t tell you is not every business is suited or even qualifies for this product. Factoring is a more robust facility, suited to most businesses and often helps small business achieve better results. Because of its flexibility Factoring is more expensive.
If you’re in the market for Invoice Financing, then give Trade Debtor Finance Consultants a call.
Our firm offers the following:
1. Takes the time to listen to what your business is about, find out your needs.
2. Explains the facilities, their costing, and the working of the facilities.
3. Discusses the different options.
4. Offers its advice in writing at no direct cost to your firm.
5. Supports your business through the Factoring lender of choice for the life of the loan, again at no direct cost.
Trade Debtor Finance Consultants offers the best Factoring Consultancy service in the industry. All it takes is one simple call.
Small Business often wonders how to improve Cash Flow. The simple scenario, person or persons have a great idea. Both put up some funds and start their new business. Often goes great for the first few months. Often they have heaps of sales out the door, waiting for clients to pay strangles their only cash flow. Suddenly they approach the banks for some finance. You’re too young, you don’t have two years financials, no BAS record, your sales are too unpredictable. Or we will give you a credit card, or a small overdraft. If you have property, they will secure this in order to give you more money. You’re left wondering what to do next. There is a way. Debtor Finance or Factoring. These lenders are only interested in one thing, YOUR DEBTORS (Account Receivables). They will lend in most cases up to 80% of those invoices upfront, instead of waiting for you to get paid. Giving you the balance when the debtor pays for the invoice. With over 45 Lenders in the country it’s not hard to find a lender that will suit your needs. That is if you’re with Trade Debtor Finance Consultants. You could spend hours on the phone, and still not get the right lender. With one call to our office, we will give you a range of options. Best of all it’s at no upfront cost to your business. TDFC also supports you for the life of the loan again at no cost to you. Just ask us for our many referrals. Don’t wait a minute longer, call us today and let us help fix your Cash Flow and start moving forward in business. www.tradedebtorfinance.com.au or 1300 00 8332 or firstname.lastname@example.org
Trade Debtor Finance Consultants – Welcomes all past, present, Future Factoring, Debtor Finance, Invoice Discounting Clients into 2013.
Welcome 2013. Trade Debtor Finance Consultants is glad to see 2013 and is excited about what this year brings.
We have big plans, with new exciting Factoring products being presented to our firm. Up to six new lenders and a arranged of different proposals. Debtor Finance has been the fastest growing finance products in Australia, with huge increases in lending in the Invoice Discounting market world wide.
No matter what goes on in the world economy, business owners still need cash-flow to grow their business. As traditional lending gets tougher, Factoring remains the same. Funding on invoices completed. No hidden securities, it grows with your growth.
Invoice Discounting too, has grown again in Australia, even thou its been a tough economic environment.
So what is your goals as a business owner in 2013. Would you like a free quote to see if this product will help your business achieve more.
I will leave you with this, imagine if you had up to 80% or your outstanding debtors cash in your bank right now. What would you do with it? Get more staff, purchase more stock, invest in another machine.
This product isn’t for everyone, but our staff do, give a written quote and offer you choices in products and lenders, at no upfront cost.
If you would like to know more, please go to our website or contact us today. Trade Debtor Finance Consultants wishes all a very successful 2013.
I own my own business that transports goods all over the state. Those in the game, know it’s a long haul, but this business is my passion and pride. To see it grow and become successful is why I started in the first place.
I have worked incredibly hard over time to manage my finances and keep my business going, but I found my inputs and outputs were just going in all the wrong directions!
I found it hard to even continue making deliveries as I couldn’t afford to keep my trucks in good condition. The tyres, fuel, registration and paying off the trucks started to have its toll on my work. I was waiting weeks until I would be paid and when I finally would receive the money, I had trucks that hadn’t made any deliveries or even moved in that matter. I couldn’t cover the cost of the deliveries so I would have to make my money stretch until I could receive work and get paid again.
I started to lose motivation as I slowly watched my business go under without a chance to see the success I had worked all this time for.
I started searching for options and I came across Invoice Discounting, there were many Lenders to choose from, but I was too small, not enough staff, it really didn’t suit my business. I continued searching, but between running my own business and transporting goods I had no time to keep assessing each lending facility.
One day on site, word of mouth, I was pointed towards Trade Debtor Finance Consultants, and I read on their website how they could help. For the price of a call, why not call them to see how they could help me through this tough situation.
It was great! I spoke to a qualified consultant that gave me FREE advice on how Factoring can eliminate my cash flow stress, help my businesses growth and pay all my expenses on time.
I found Trade Debtor Finance Consultants useful because I didn’t have to assess lenders and play guessing games on what suited my business. TDFC knew every product and exactly what suited my business and they continuously gave me support whenever I needed it. They have helped me slowly get on top of my business and now there is no more waiting around to be paid. I receive payments within hours not days! My trucks are now all serviced and always making deliveries so my business is always making an income. Yes it comes at a cost, but trucks not moving cost a lot more.
As most would know Transport is never a get rich quick scheme. Listen to the TDFC team, they monitor my accounts for free, give me tips to save money and best of all, service like it was their own business.
I finish with, I go where the work does, I may never be a millionaire, but I will give it my best shot to makes some serious money. Which I have no problems in saying, Factoring will get me there, if I make this succeed. I have asked for my company name to be withheld for obvious reasons, but would be glad to give Trade Debtor Finance Consultants a reference should any person require.
Do You Feel Like Your Business Wants To Succeed, But Cash Flow Is Letting You Down? Financing Is The Answer!
Have you always wondered how you can get your business cash flow to increase? Your expenses are doing it! So why not your cash flow?
There are ways you can increase your cash inventory and pay bills on time!
Factoring can do more for your business than just give you money now when you need it.
IT CAN INCREASE YOUR SALES, INCREASE PURCHASES, and INCREASE PRODUCTIVITY!
There are so many benefits using Debtor Finance and with it you will see your business grow to its fullest potential without the hassle of overdue expenses.
Businesses that have used Invoice Discounting have seen these benefits. It has had a great affect on helping businesses cash flow through the times of financial struggle. Businesses have managed to stay alive even with growing expenses.
TDFC offers FREE written obligation advice that is honest and straight to the point. Save yourself time and money! Stop guessing what Lender to use!
TDFC explains your options in an understandable way! How t0 set-up lenders chosen, what facility fits you and your needs and how your business can use these products to grow.
Get your business paid NOW and start growing to the next level. TDFC has lots of references to prove what we say works.
My name is Madison and I have recently graduated High School and today I received an offer from QTAC to do a Bachelor of Business. I start this February and I’m really excited to start!
I have always had a passion for business and to learn what will be useful for any business; this is such a big opportunity to learn what I will take with me out into the world and what I will use as I continue to work with Trade Debtor Finance Consultants.
Thank you all for your best wishes and support as I move into this new season of my life!
I work hard all through the day,Then customers always say,
I’ll pay you when I can…That’s seems a long time… OH MAN.
I wait days and days and days,And I still haven’t been paid, And now bills have been delayed.
Oh what a mess, now I’m having plenty of stress,
I just want to get my business through, And get back to what I usually do.
I’m trying to keep afloat, But I’m becoming a fast sinking boat.
I couldn’t find a way, To make these bills all go away.
I knew it’s time to be smart, And talk to someone who understood my part.
I came across TDFC, That offered great service for me.
They explained how they could help, And get my business some needed wealth.
They gave me loads of advice, That made my situation seems more al-right.
Now the stress has gone away, And it’s much easier to say, That TDFC saved my day.
Next step use cash-flow and double in size, Giving me more profits, this is my ultimate prize!
So come and find out now, Don’t be left wondering how.
Just give TDFC a call, And they won’t treat your problem small.
8 Weeks is a long time. Often small to medium business are strung out over the Christmas break, putting a huge strain on their Cash flow early in the new year.
Use this to your advantage. Get funding on your invoices so that you have the cash to sustain the long wait, and hit the ground running in 2013.
There are no lock in contracts, selective Invoice Factoring, and normal Debtor Finance products.
How it works: It is simple, you can get advanced up to 80% of the invoice value, should you need, with 24- 48 hours. You receive the final 20% of the invoice when the debtor pays their account.
Security needed to Factor: In most cases all you need is a personal Guarantee and the debtors as security. In most extreme cases of one on one factoring, or in construction, property security may be required.
How long does Debtor Finance take to set: In most cases in less that two weeks. As long as the client has all the required paperwork its a fast process.
Lastly how do Trade Debtor Finance Consultants Pty Ltd Help? Our firm offers a complete run-down of all Factoring facilities available With over 22 lenders in support we supply in most cases up to 4 options with a written obligation free quote. Our firm again provides complete support for the life of the loan, should it be required, at no cost to your firm.
I have graduated from High School and I can honestly say I don’t miss it, because working at Trade Debtor Finance Consultants has been exciting and they are working to open new doors for me so I can learn and advance my knowledge of the business.
I have completed a Business Management Certificate III and the next step is to complete a course that will qualify me to use MYOB. With these qualifications and a Business degree that I will be starting in 2013 I will be working more closely with the business and the consultants.
Through my training I have been learning about Invoice Discounting, Factoring, Debtor Finance and how TDFC helps by giving FREE advice and finding ways to help businesses that are struggling. It has been great learning more and more about this complex side of business and I look forward to meeting you and learning more about your businesses. www.tradedebtorfinance.com.au
Madison Goodwin Administration Manager
Debtor finance facility – Factoring has been around for a long time. People often tell myself, that the reason they are coming to Factoring – Invoice Discounting is because the banks won’t lend them any monies. Why is that? I ask. They proceed to tell me a number of reasons:
1. I have no assets
2. I have no trading history
3. I have credit problems
4. My business is too small.
With these answers in mind, from a bank point of view, why would they take a risk? They were never interested in young businesses, they want large well established ones. Banks really don’t micromanage well and often causes smaller businesses, heart aches and pain.
Which brings me back to to my question. Debtor Finance Facility, Factoring, Invoice Discounting products are all funded against invoices. The security in the whole loan is primarily the debtors and their strength. Lenders keep exposures and limits in check, helping avoid any situations which will leave you, the client, vulnerable.
Factoring, Debtor Finance firms will do checks on Debtors, maintain alerts to try and avoid any bad debt decisions. Most Factoring firms only care about the invoice Finance, and let owners get on with business lending.
Lastly Debtor Finance lenders try to assist you in the growth of the business. It’s in their interest for you to grow, so they make more money. The most important things owners should ask are:
1. What will I do with the funding once I get up to 80% of the invoices in 24-48 hours?
2. Do I want to be in a contract or not?
3. How long do I want to be in a product for?
4. What is my long term solution once I get to my growth phase?
5. How do I get out when the time comes?
Trade Debtor Finance Consultants ( TDFC ) offers a written obligation free quote which puts you in touch with up to 4 appropriate lenders for you to choose from. TDFC also offers support for the life of the loan, offering help and or feedback on the do’s and don’t’s. TDFC has a large range of references now for your firm to choose form.
So if you would like to get it first hand, with up to 22 lenders and 9 different products to choose from, contact Trade Debtor Finance Consultants today and help a Small Family owned Business today. A debtor finance facility may just be what your looking for to maintain your cash flow at a reasonable state. Contact us now.
For a definition of Debtor Finance go to http://en.wikipedia.org/wiki/Debtor_finance
Madison Goodwin our office person at Trade Debtor Finance Consultants has completed her year 12 in style. School Captain and with merits in nearly every subject, I wish to congratulate her on her fine achievements.
She has nearly completed her Certificate 3 in Business. Her goals are a Degree or Masters in Business, along the way helping our Factoring consultancy firm grow, while studying at Uni.
I would like to thank Mr John Blase, because without him she would have never found it to Parkland’s Christian College. And if listening, the Late Dianne Goodwin, Her strength and support guided Madison through those tough times.
I wish her well and after the parting stops, hope to she her refreshed and back her in our office helping our factoring clients grow their businesses. www.tradedebtorfinance.com.au or email@example.com
In May we lost our Director and my lovely wife to Cancer. It’s been a tough road to continue to get up and get going each day in Business.
In order to achieve this we must remember how we got started. Our business was here to help businesses grow and offer a service for free.
In weeks and days after the tragedy, generous community and clients made arrange of donations with cash, gifts and food to assist our family in our darkest hours.
I used such gifts to purchase her memorial cabinet, which is over 120 years old. I know she would have loved it. Also I have used the money, by putting it back into the community is requesting a plaque be constructed and placed in her final work place Canungra Family Practice.
She loved working there, and she loved all the community members from all around. My family wishes to make one final thank you to all clients, customers, patients, Friends and family for all their kind wishes and gifts.
I would like to give a big thank you to Ron Quickenden for the wood turning of the plaque. Also thanking his daughter for intricate design around the edges of the plaque. And I couldn’t for get John Ritchie, big thank you for organizing it all.
The plaque has a story behind it. Ron said he wanted to do the plaque in Jacaranda. He said he had a piece and searched high and low but could not find it. So they settled for some swamp wood. Both parties finished the turning and engraving, not liking the finished product. All of a sudden Ron, noticed right in front of him was the piece of Jacaranda he had been searching for. Not being religious, he believes that Dianne had something to do with it making its way to view.
If you ever drive out to the wonderful community of Canungra for lunch or a coffee, stop in at the Medical Practice over the road and see the plaque first hand.
Always loving Husband and Family.
Sid, Madison, Jason, Chantelle, and Eligh
Do you need to factor everything?
How much does it cost?
Am I locked into a product?
What are the hidden fees?
Will my debtors know about this product or not?
These are the most common questions Business owners ask Factoring Companies and with good reason. They want to know the truth; they want to know everything about these products in order to make the correct decision.
Trade Debtor Finance Consultants offers all the right answers about Factoring Companies, Debtor Finance, and Invoice Discounting. We do so in writing, we also offer a free support for the life of the loan at no direct cost to your firm. We seek the best price and best product to meet your business needs. Let our consultants show you how to Cashflow Finance your business today.
Often business owners are very nervous about selling of their assets, and as a business owner myself, I don’t blame them.
Factoring, Debtor Finance, Invoice discounting, which product suits my business? Can I afford it? Will they harass my debtors? Will my debtors think I am going broke? What happens if someone doesn’t pay? Will they fund just one debtor? Will they need property? Why guess with this decision making when you have a firm who doesn’t have any direct up fronts and will offer you up to 4 options at a time to choose from, and will offer a life time support with the lender chosen, again at no direct cost to your firm. Factoring, Debtor Finance, Invoice Discounting offer business owners the chance to sell their invoices and get access to up to 90% of their value so they can grow their business. Once the debtor pays his account, the lender releases the final 10% less any fees incurred. It is a very simple product.
In the past Factoring, debtor finance, Invoice Discounting lenders have sold these products as a measure of last resort. These lending costs are a recipe for disaster as they too add to the bottom line, as the client often borrows in order to pay bad debt.
Factoring lenders are often full service products. They are more expensive as they offer more service. Smaller businesses often are drawn to these products.
Debtor Finance lenders offer a client a more complete product, as it acts as an overdraft on their debtor invoicing. This gives the clients some control of borrowings and the length of time it’s out for. Often more larger clients use these products. Invoice Discounting lenders are often bank products. Same principal, overdraft on invoices, but often much larger clients with larger turnovers attract the better rates.
Invoice Discounting is often confidential and clients have to have excellent back end systems in order to obtain.
Trade Debtor Finance Consultants offers an obligation free quote with up to 4 lender to choose from. We also offer support for the life of the loan. Don’t get caught by brokers, who slug you upfront and disappear when it all goes bad. For more information please email or go to our website. firstname.lastname@example.org or www.tradedebtorfinance.com.au
Debtor Finance, Factoring, Invoice Discounting has often been misinterpreted and misused. These finance products were never designed to send a business owner broke. However, if misused as they have been in the last 20 years, often the costs of these products has been taken off the profit line, eating away at any chance of the business succeeding.
It’s taken time, repeat clients, and long term clients referring fellow clients, that Accountants are now seeing what Trade Debtor Finance Consultants offer is genuine. Not only do we explain Factoring and all its benefits, but we explain products, lenders, contracts and even fit the client to the correct options. Our recommendations to a client is up to four Factorting options. Trade Debtor Finance Consultants can find facilities for clients invoicing $10k a month, all the way up to $5 million a month.
We offer all our recommendations in writing. We involve your Accountant fully and we liaise with the Book keeper insuring they understand the process. Basically Trade Debtor Finance Consultants takes the guess work out of Factoring, making Debtor Finance a simple decision.
Ask your Accountant today about these cashflow products, get him or her to speak to us if they are not already and see if we can find a solution for you today at no cost to your firm.
Hard to believe we started with nothing. No website, no way of getting a client, except for the Factoring knowledge we had we set out in creating our business. We approached a handful of lenders at the time and began offering clients our recommendations.
Now 7 years on, we support over 28 lenders in Factoring, Debtor Finance, Invoice Discounting- Australia Wide. We have over 50 clients who recommend us and support our processes.
It hasn’t been all good news, in 2012 losing our Director Dianne Blase Goodwin to her fight with Cancer. A big “THANK YOU” to all the tributes, food, flowers, donations and support. She will truly be missed by all. It was her legacy to continue to grow our business and help as many as we can get the insight into this often tricky factoring finance facility.
Again thank you to past, existing cleints in helping our name get spread around by the word of mouth system. For anyone who needs more information about these products, please go to our website. www.tradedebtorfinance.com.au
Trade Debtor Finance Consultants is proud to announce it will be attending the Local Live & Local Expo 21-24th March 2012.
During this event Trade Debtor Finance Consultants will be manning a stand and offering specialist consultanting about Factoring, Debtor Finance, and Invoice Discounting. So if you have an existing product or just wanting to know more, pop in to our stand and get a obligation free quote.
We are also supported by Local Smile who has provided information online. http://logan.localsmile.com.au/Business/TradeDebtorFinanceConsultantsPtyLtd
Not only do the provide information about our firm, but lots of information about the show, other small business, and of course sponsors.
Factoring, Debtor Finance, Invoice Discounting.
Within the ranks of Trade Debtor Finance Consultants, we have seen a steady change in the business environment. Construction companies starting again, Transport companies getting better deals, Manufactures competing against the Chinese Juggernaut.
Most of these industries are contacting us at a daily rate. Factoring, Debtor Finance is the fastest growing facility in Australia. In fact more and more lenders are popping up everywhere. If your business has been through tough times, or looking to start up, Factoring is the only finance product that will assist you grow to the next level.
Most of the time, insufficient cash flow is the largest reason why new business’s don’t survive in the first 12 months. Freeing up cash from your outstanding invoices, keeps the cash flowing in, instead of waiting 30,60 days to be paid.
As TDFC has been trading over 3 years now, we have references from Factoring clients that have been with us for two years and moved on as they have grown their business. TDFC only uses reputable Factoring or Debtor Finance Lenders.
For more information with a free quote about Debtor Finance, contact Trade Debtor Finance Consultants today or email email@example.com www.tradedebtorfinance.com.au
Factoring or Debtor Finance.
It’s a very trick subject. Funding invoices and getting up to 80% of them in 48 hours instead of 30 – 75 days. Using this cash to catch up bills, grow your business, buy more stock, and or employ more staff. Then getting the balance of the invoice ( The final 20% less fees) once the debtor pays their account.
That is the Factoring product in the nutshell, but its obvious that each business is different, and has different circumstances. So with that in mind, every lender has different advantages and disadvantages.
TDFC ( Trade Debtor Finance Consultants) help clients not only to understand the product, but help them get choice in which lenders will suit their needs. Best of all, it is at no direct cost to your firm. Also if any of our lenders are chosen, then TDFC consultants will help you with support for the life of the factoring loan, again as no cost. TDFC was set up to help business use these products and get on with growing your business.
The best example of this. A business with around 1.8 million turnover approached our firm about factoring. They had spoken to their bank, but because they had a tax arrears, the financier shunted. them. They spoke to other lenders with a similar result. One call to TDFC and our firm offered them 4 alternatives. This firm has now payed back their arrears and have steps in place to not only stop this from happening again, but is now moving forward in growing. Now that this is happening, they will be able to get their original product of choice, no problems.
Business Owners are often not quite sure if Factoring Invoices is a good thing or not.
So let TDFC help you decided. Your business already has a sales, and a range of debtors. The only problem is that you have to give them terms which in most cases you become the bank for their purchases. Often as a business owner you shielding calls from your creditors and can’t seem to pay for stock until such time as your debtors pay their bills. It is a vicious cycle.
Factoring or Debtor Finance can be the answer. Getting up to 80% of your outstanding invoices in 48 hours instead of 30 or 60 days can assist your growth, get discounts from your suppliers, or even help you pay wages for more staff.
In most cases, the better Factoring or Debtor Finance products are used exactly like an overdraft. Drawing down what you need, when you need it, and only paying interest on those amounts. Of course finding the right products which suit your business is a tricky scenario. Factoring salesman tell you what you what to hear, not what’s best for you.
This is where Trade Debtor Finance Consultants come to fruition. TDFC interviews your firm, gets all the information it requires to give you a written quote and more importantly in most cases options with one call. There is no direct upfront costs, and TDFC gives support for the life of the loan chosen.
TDFC helps you through the tricky take on or teething period, advising your firm of the optimal way of using these factoring facilities. Best of all if our consultants don’t think this product will assist your firm, we will tell you. For a free quote email firstname.lastname@example.org or visit our website www.tradedebtorfinance.com.au
This word is often looked upon as a dirty word in finance. Factoring or Debtor finance is the name given when financing invoices and getting paid for them in 48 hours instead of waiting 30, 60, or 90 days.
Factoring has been present for thousands of years. Often it has been used as a method of last resort and therefore copping the blame for sending business’s owners broke. In most cases this product will highlight deficiencies in company procedures and if left unchecked will become a nightmare.
In some circumstances it can be a very costly exercise because they think factoring companies will give them cash flow and collect debts for them. Often forgetting that they are finance companies and make monies of interest borrowed.
Trade Debtor Finance Consultants was set up to offer business’s a free quote and consultation about these products. Our firm is here to answer those more difficult questions and if any of our lenders are chosen, we offer support for the life of the factoring loan at no direct cost to your firm.
Factoring is a very positive finance product if it is used to grow your business. It may not be as cheaply priced as a Line of Credit, or overdraft (which are normally set and secured by directors assets). However Factoring or Debtor Finance is often secured by one business asset. Your debtors! Borrowing against your debtors depends on the size of your receivables not your assets.
Factoring firms do credit checks, set limits, set exposures, and is the safety net for business’s looking for new clients. If you give a Factoring firm the new clients ABN number before you comence sales or work, they will conduct a credit search and set a limit assisting business with the application process.
As stated you don’t want factoring firms collecting invoices. They make their monies of the length of time it takes them to be paid, so its always a conflict of interest. Keep the collections in house, make sure your know the length of time it takes to be paid, and factor accordingly.
TDFC consultants help understand all the ins and outs of these products. We find the lender or lenders to suit your factoring requirements with just one call.
Trade Debtor Finance Consultants was created so that business’s get the right advice about these products at no direct charge to your firm. These products are more expensive than bank products, however the risk is higher. Banks want assets to protect their interest and in doing so tie up the directors assets in the process and well as the business assets.
Debtor Finance only takes the business asset. (Your debtors as security). This is partly the reason why costs are higher. Also most private lenders borrow their funds from a bank, so they have to pass on costs. Its not proven but a bank can regulate the lenders costs, making their own products look like a better deal.
Factoring or Debtor Finance is best used to grow your business. If your growing your business then the cost are less concerning as your using cash advanced from your business assets. Without this your business would be in a position to grow.
Basic concept is if you have a range of debtor paying 30 – 60 days and instead of waiting get paid 80% of those invoices in 48 hours with the final 20% less a fee when the debtor pays, your business would be accessing your cash to grow your business. You not borrowing moneys, your not loaning more amounts against your asset. You simply getting paid faster. If your sales ledger grows, so will your debtor finance limit and often as you get bigger it gets cheaper.
Some common statements TDFC consultants have heard are the following:
My Accountant said that is expensive and a bad idea! ( Okay, so how does your accountant what to grow your business, get more stock or staff. Remembering this product is to grow your business not pay overdue bills.)
My debtors will think I am going broke and stop buying form us!
Maybe 20 years ago when not much was know about the product, but today if directors let debtors know that your positively growing your business and this will help your business get a better buying price, which will flow back to them, you will find they will be receptive. Debtor often are only worried about the fact that a finance may chase them if they don’t pay their bills. Well that is a great, but often not the case, as the invoice will be sold back to you in 90 days if not collected. In our experience, upfront explanations often stop the mind from wandering its own conclusions.
TDFC has experienced staff that can explain all the ins and outs of these products. Our firm is here to offer choice and fit the lenders to the clients needs. Often going direct you get a salesman that tells you what you want to hear. TDFC gives support for the life of the loan as no direct cost and can answer any questions you may have.
Has Qld Flooding caused Cashflow Issues?
If you have a business who, is now in desperate need of funding, you can use Factoring or Debtor Finance to finance invoices until such time your business gets back on its feet. TDFC has no upfront fees and will negotiate and support your firm for the life of the loan.
No matter what industry or size of the firm, TDFC consultants will do all it can to assist your business in and out of the finance products.
For more information please call Trade Debtor Finance Consultants today.
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