The latest statistics for debtors finance in the June 2013 quarter, released by the Debtor & Invoice Finance Association (DIFA) was $15.4 billion, which is an increase of 5.7% in comparison to the March 2013 quarter.
Debtors finance an alternative source of cash flow
As Small to Medium Enterprises in Australia, continue to experience challenging business environments, debtors finance to free up working capital, provides an alternative source of cash flow to meet sales demand, and operational expenses.
DIFA Chairman, Mr. Lee Clarke said “We continue to see Australian businesses take advantages of the benefits afforded through debtors finance and this trend is set to continue as SMEs becomes more familiar with this means to leverage their books to enhance cash flow”.
How debtors finance works?
- You invoice your customers for goods or services.
- You send a copy of your invoice to a factor (like Key Factors).
- The factor then gives you up to 80% of the value of the invoice.
- The remaining 20% of the invoice is credited to you as soon as the customer pays, less any accrued fees.
NSW & ACT, followed by VIC, QLD, & WA were states with the highest factoring turnover, in the June 2013 quarter.
Industries with the highest percentage of factoring turnover includes Labour Hire making up 35%, Wholesale Trade 15%, Manufacturing 12% and Transport & Storage 12%.
By factoring, you can get cash for unpaid invoices in as quick as 24 hours and cover the gap of late payments, meet operating expenses and grow.
The full DIFA Statistical Update- June Quarter 2013 is available at:
Contact us at Key Factors, on 1300 884 100 and a local state manager will be more than happy to discuss your needs and provide you with a quote to suit your requirements today.
Ever consider using an invoice discounting facility to improve your cash flow and get on top of ATO bills?
For new and growing businesses, it can be difficult to keep on top of ATO bills and make payments on time. There are so many practical aspects of setting up or expanding that tax administration can often be the last thing that gets done. Also, if your business is growing significantly your tax obligations may change from one period to the next, making it tough to keep track of.
For peace of mind and for compliance purposes, it’s a good idea to pay your ATO bills on time. However there may be a gap between when your bill falls due and when your clients or customer pays you.
The solution – invoice discounting facility
Invoice discounting facility enables you to draw funds from your account receivables to pay your ATO bills. For example, you have an ATO bill due but there are not enough funds in your account to make the payment as you are waiting on payments from your customers. By using Key Factors factoring service you can get up to 80% on the face value in as quick as 24 hours to immediately pay for the ATO bill.
Key Factors have assisted SMEs from a wide range of different industries including but not limited to labour hire and recruitment agencies, manufacturing operations, wholesalers, commercial cleaners, mining companies, and transport/logistics groups. Having access to immediate cash flow by factoring invoices not only allows you to meet unexpected ATO bills but can also help to alleviate a range of cash flow issues.
Flexible invoice discounting facility
If you have found that cash flow and ATO bills are a recurring problem, you may wish to consider establishing a invoice discounting facility. There is also no minimum and no long-term contracts with Key Factors invoice discounting facility and you will only pay for what you use. We also offer fast 48 hours approval and it is relatively simple to apply.
Call us now on 1300 884 100 to find out more