So you have won a huge opportunity to grow your business with a new client, you are incredibly excited but wait! Where will you get the cash-flow to pay your suppliers and staff?
Invoice factoring is vital to help grow your business as it has many benefits to make business deals less stressful on you, your business partners and on your bank account. Invoice factoring is easier than getting a business loan from a bank and can also give you immediate cash for your sales invoices. It also opens more opportunities to work with higher paying clients and larger projects as your business grows.
What is invoice factoring?
Invoice factoring is a type of debtor finance in which a business sells its accounts receivables to a third party like Key Factors for immediate cash. This process enables your business to cover the gap of slow payments instead of waiting up to 90 days to get paid. With Key Factors invoice factoring you can get up to 80% of the invoice value in as quick as 4 hours, and the remaining 20% is credited to you once the customer pays.
Here are a few helpful tips on how to grow your business with invoice factoring.
Grow your business with upfront working capital
With invoice factoring, it gives you upfront funds to be able to put money where you need to. Which as a result will help you grow your business. Whether it be hiring new staff, renting a new office space or purchasing new equipment to help you fulfill your business needs. With invoice factoring, you have the flexibility to access funds and use them in your business instantly.
Pay your suppliers on time
Being able to pay suppliers up front and on time for their work is very important to help grow your business as you can often negotiate better deals for payment upfront, and on top of this, you will gain a great reputation among your suppliers which will help with getting better business deals in the future.
Use Invoice factoring to pay your staff
Nothing is more stressful when trying to grow your business than thinking about how to pay your staff wages. Invoice factoring will help you ensure they are paid correctly and on time so that you can continue to run your business. Invoice factoring can also help with expanding your staff as your company’s revenue grows, making the workload less stressful on your current resources.
Speak to Key Factors about Invoice Factoring
Key Factors can help you set up invoice factoring and answer any questions you may have. We can also follow up on unpaid invoices on your behalf to allow you the freedom to focus on your business.
Key Factors allows businesses to have access to cash within as little as 4 hours! With no minimum volume or ongoing monthly charges, we can help you bridge the gap of slow payments so you can focus on growing your business. With offices in Perth, Sydney and Melbourne, our local State managers can provide a tailored invoice financing solution to suit most Australian businesses. With over 30 years of experience in invoice factoring, your business is in good hands.
Contact us at Key Factors and a local state manager will be more than happy to discuss your needs and provide you with a quote to suit your requirements.
Running your own business can be challenging and if you don’t have the right tools or enough business finance to help fund operations, the stress can take a hefty toll on your health and wellbeing along with your company success.
One of the main reasons many businesses fail is poor cash flow. This is unfortunate as it is an easy problem to solve if you have the right knowledge and take advantage of different funding options. Here we will provide you with some valuable information on factoring, a flexible business finance alternative.
A great way you can maintain your business finance is to use factoring to get instant cash upfront by financing your accounts receivable.
How does factoring work with Key Factors?
Improve your business cash flow in 3 simple steps:
- Invoice your clients and send us a copy.
- We transfer up to 80% of the invoice value to your nominated account in as quick as 4 hours.
- The remaining 20% is credited to you when your client pays us.
By getting the cash upfront you can eliminate the stress of the waiting for clients to pay in 30, 60 or even 90 days. BCashflow Positive factoring service also provide account management and follow up of your outstanding accounts at no extra cost. This gives you peace of mind allowing you to focus on doing what you do best which is growing your business.
Factoring allows you to pay your staff on time, instead of having to try and get a business loan from a bank which can take weeks or even months.
You can use factoring to pay ATO bills, office costs, rent, supplier costs and any other expenses you may have in your business. It’s also a good idea to use invoice factoring for those unexpected expenses that pop up from time to time or when your business is experiencing rapid growth and require additional working capital.
If you would like to know more details about how you can use a flexible business finance option like factoring to improve your cash flow, complete our quick contact form or call 1300 884 100 to speak to one of our factoring experts.
If you are thinking about ways to improve working capital for your business but want to know more about the benefits, then you have come to the right place. Here, we will go through 8 benefits of using debtor financing to improve your company’s working capital.
1. Reduce stress
Waiting for your clients to pay can be one of the most stressful things about running a business. The stress of waiting for payments is almost impossible to control, however with debtor financing you can control how fast your invoices can be converted into cash.
2. Get immediate access to cash
Need to buy more office equipment, pay rent or any other bills that come with running a business? With debtor financing, you can get immediate access to cash so you can pay your business running costs on time with no fuss.
3. Take advantage of earlier payment discounts
You may see on some invoices such as your electricity bill that companies now offer “early bird” discounts for you to pay your bills upfront and early. By using debtor financing you can take advantage of these offers and negotiate earlier payment discounts with your suppliers.
4. Get on top of ATO obligations
Debtor financing is a great option to release immediate working capital so you can get on top of your ATO bills. It can also assist with meeting your monthly installments payment if you have entered into a payment arrangement with the ATO.
5. More time to focus on your business
Imagine all your bills and company costs already being taken care of whilst you can be more productive and get back to growing your business. Debtor financing in Perth can allow you to do just that by releasing cash from your invoices.
6. Key Factors will follow up on payments on your behalf
Key Factors will also follow up on any outstanding factored invoices on your behalf, giving you more time to focus on running your business.
7. Opportunity to service bigger clients
Another advantage of debtor financing is it gives you more working capital to service larger clients. This is crucial to aid expansion and further growth.
8. Flexible funding alternative
Key Factors flexible debtor financing has no lock-in contracts and allows you to choose which invoices you want to be funded.
Accessing up to 80% of your invoice value in as quick as 4 hours is an easy as 1 2 3:
- Invoice your clients and send Key Factors a copy
- We advance you up to 80% of the invoice value in as quick as 4 hours
- The remaining 20% is credited to you when your customer pays us, less any accrued fees.
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.