If your immediate reaction is all I want to do is talk with INDEPENDENT, EXPERT ADVISERS with OVER 23 YEARS experience in the Factoring Finance business (including the LAST RECESSION) then you can by-pass all the free assistance and information in our web-site and contact us directly below on :
1300 79 30 60
Our advice and ongoing support is free*
(*subject to terms and conditions)
Alternatively if you want to explore factoring finance further please follow the factoring link and we will provide you with further insight into factoring finance so you can make an informed decision as to whether it is appropriate for you:
If you wanted us to cal you back at a time to suit you, then please complete the enclsoed form and we will call you back.
Alternatively if you want to explore factoring finance further we would guide you to the following areas of our web-site that we believe will provide you with the assistance you might require:
Is Factoring Finance is Right For You?
To help us direct you to the most appropriate information for your current situation, please review the following five statements on Factoring Finance to see which is most appropriate for your situation. You can click on each link to go to information specific to your specific requirements or perhaps you are feeling a combination of all 5. i that is the case you might want to read all 5 different areas.:
1) My business is EXPANDING and my overdraft is not sufficient to finance new opportunities. click here
2) I am concerned that the working capital for my business is SECURED BY MY OWN REAL ESTATE especially given weaker economic times.
3) I am looking at buying/acquiring a business
4) My bank are being increasingly difficult with me and want more security.
5) My business is suffering and I need additional time and cash flow to help me turn the business around.
6) I am concerned I may be too late to save my business - I may need to re-structure my business.
1) My business is EXPANDING and my overdraft is not sufficient to finance new opportunities
This is probably the most common use for factoring finance - where the bank overdraft is proving insufficient for the growth of your business. Lets consider how..........
a) YOUR OVERDRAFT IS FIXED
With EXPANSION your sales are growing and so is your need for working capital. You need for example :
additional stock
additional staff
and of course your own customers treat you like a bank - and why not - after all you don't charge them interest or take security!!
You are probably owed a lot of money right now - and THE MORE YOU EXPAND THE MORE MONEY IS OWED TO YOU!
But your OVERDRAFT IS FIXED. This is because it is secured against a FIXED asset - TYPICALLY YOUR REAL ESTATE. The more you expand, the more likely you will regularly hit your overdraft limit - and get those calls form your bank manager - as your business needs more and more cash to fund its growth.
b) FACTORING FINANCE EXPANDS DIRECTLY WITH YOUR SUCCESS
FACTORING FINANCE, on the other hand, GROWS DIRECTLY IN LINE WITH YOUR SALES. The more sales you make, the more the cash grows with you. You simply :
1) RAISE YOUR CUSTOMER INVOICE
2) SEND A COPY TO THE FACTORING COMPANY
3) GET UP TO 90% AGAINST THE VALUE OF THE INVOICE (INC. GST) WITHIN 24 HOURS
(The other 10% is returned to you when the customer pays)
There is no more waiting around for your customers to pay you....and the beauty of FACTORING FINANCE.......there is NO REAL ESTATE SECURITY (in the majority of cases)
2) I am concerned that the working capital for my business is SECURED BY MY OWN REAL ESTATE especially given weaker economic times.
SEE COPY FOR REAL ESTATE PAGE
3) I am looking at buying/acquiring a business
SEE COPY FOR ACQUISITION
4) My bank are being increasingly difficult with me and want more security.
We are seeing the banks tightening their credit on an almost weekly basis. It is not that banks are benign difficult, it is more that the senior management of the banks are MORE concerned about NOT LOOSING money than making it. Long gone are the days of credit being "SOLD" by bankers - now credit is being "EARNED" - see our article on Credit is being earned not sold for further details.
The banks attitude is not surprising as banks actually make small % margins on the loans they offer. It is actually very rare for a bank to make 5% on a loan - e.g. $1m facility at 5% they would make $50,000 over the year - BUT their risk is $1m. So if they lose $200k on a loan because for example of poor quality security they would have to make $4m of loans to make up for the bade debt of $200k JUST TO BREAK-EVEN. If you were in their shoes what would you do?
In reality a lot of companies believe Banks should take risks. Banks are risk averse - they do not TAKE risks - they MANAGE risk.
So if a banker is asking for more security it is far from perfect - btu in recessionary times, banks DO and WILL ask for more security - especially when they believe asset values are falling.
If they are asking for more security you DO HAVE OPTIONS - for example Factoring Finance.
If you had doubts over the security being offered by a customer however if they lose money they have to put in place it costs make.
5) My business is suffering and I need additional time and cash flow to help me turn the business around.
6) I am concerned I may be too late to save my business - I may need to re-structure my business.
3) SO WHY IS FACTORING MORE EXPENSIVE THAN BANK OVERDRAFTS?
Factoring Companies are invoice SPECIALISTS. They understand the risks associated with invoices. By monitoring those risks they can MAXIMISE THE FUNDS they can make available to you. In most cases, they will:
1) Undertake credit checks on your customers
2) Undertake your credit control for you if you wish (i.e. chasing your customers for payment- although there are a number of different service options - where you still chase your customers - and indeed with confidential factoring your customers know nothing of the factoring company's involvement)
3) Provide credit insurance against your customers going into liquidation.
4) Undertake their own due diligence - to make sure you are not sending them just fraudulent invoices (there is even a trade term for it - a FRESH AIR INVOICE!!!)
All the above means there are additional costs in managing those risks - but the BENEFIT TO YOU is that you get access to :
MORE CASH WITHOUT REAL ESTATE SECURITY
4) HOW DO CASH STREAM FINANCIAL MAKE MY FACTORING FACILITY LESS EXPENSIVE?
We are SPECIALIST FINANCE BROKERS AND ADVISERS in the field of FACTORING, INVOICE DISCOUNTING AND STOCK/INVENTORY FINANCE. Our Managing partner has spent 20 years in the factoring industry as a lender and broker and is a published author on the subject (click to see details of the Factoring and Invoice Discounting Book he co-authored). We are GAMEKEEPERS TURNED POACHERS - we know the wrinkles of the facilities. AND OUR ADVICE IS FREE! So how does this help you?
If you don't know the right questions to ask, human nature determines a salesman MAY conveniently forget to tell you certain aspects of the facility. For example factoring fees are charged on GROSS invoices (i.e. inc GST) not NET, and as for MINIMUM INCOME CLAUSES ......tucked away in the contract. So will any salesman, let alone a finance salesperson, look after YOUR needs ? Of course good business is all about win-win - and not all salespeople are unprofessional but if you are inexperienced with factoring - wouldn't you rather have an INDEPENDENT EXPERT working with you - LOOKING AFTER YOUR INTERESTS - especially when the advice is FREE?
Raising cash flow finance is what our business is about. By using us :
1) We speed up the process of raising finance and
2) We MINIMISE THE TIME you need to spend on sourcing the APPROPRIATE FACILITY.
3) We provide INDEPENDENT ADVICETHROUGHOUT THE WHOLE TRANSACTION, looking after YOUR needs.
Of course you may decide you wish to go it alone - and if you do - you do so with our good wishes. But in one phone call to us we can tell you :
1) How Much Cash you can raise from your Invoices - for example you will get a lump sum when the factoring facility starts.
2) The key risks factoring companies will see from your business
3) The likely costs of a facility
4) The best parties suited to your needs.
We will then work with you THROUGHOUT THE WHOLE PROCESS OF RAISING FINANCE providing you with back up support and KEEPING THE FACTORING COMPANIES HONEST - all WITHOUT CHARGE TO YOU.
So what have you ACTUALLY got to lose from an impartial, confidential chat with a specialist in this field? So why not CALL US today on
1300 79 30 60
Or fill in the enclosed form and we will call you back at a time to suit you.
