There are many positives to utilising a factoring facility that can sometimes be overlooked. Factoring enables business owners to meet the goals they set, with greater efficiency. Below is a non-exhaustive list of reasons why factoring finance is the fastest-growing lending product in Australia:
Higher Sales = More Cash: Factoring, invoice finance and debtor finance lending lines grow as your sales ledger increases. Your business can utilise available funds as invoices are raised.
Fast and Simple: Applying for a factoring facility is a quick and easy process. This is evidenced by the ability to have a credit line approved and money in your account within 5 business days. Ongoing requirements differ to a bank facility; only basic, ongoing information such as a management account is to be provided.
Dedicated Collections Team: Your facility will have a dedicated collections team, meaning you can feel safe with the knowledge that your debts will always be collected in a timely and professional manner.
Asset-Free Finance: Directors and Shareholders are free from putting up any personal assets as security, with the invoices making up the lender’s security.
Utilise Supplier Early Discounts: Your business will be in a position to utilise discounts offered by suppliers.
Credit Information on Customers: Factoring and invoice finance facilities will generally provide you with information on your customers to ensure that you are not giving credit to companies who are not in a position to pay their ongoing debts.
Startup and Non-Bank Qualifications Welcome: Factoring lenders generally have an appetite for businesses who are in a stressed financial situation or are just entering the market, requiring an early cash injection and ongoing cashflow support.
Reduces Business Costs: Generally, a factoring facility will enable the business to put employee resources elsewhere as the facility will assist with the collection. Furthermore ongoing ledger reconciliation including allocating customer payments is included.
Order More Stock, Faster: The facility will allow you to purchase stock upfront to continue to meet your customers’ demands and grow the business.
All the above benefits are part and parcel of a FactorONE facility. To find out more about the benefits, or to make an enquiry, call 1300 332 867 1.
