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Cash Flow Finance For Small BusinessCash flow management is critical for small and medium businesses. It’s the lifeblood of your company, it keeps business ticking over, and it needs to be managed carefully. Cash flow problems generally come down to one thing – cash coming in too slowly, and going out too quickly! Encouraging customers to pay quickly, while delaying outlays of cash, will provide a more constant cash flow. But as we know is not always that easy to achieve. There are several ways to do this, and it’s important to get it right from the start.

1. Plan your cash flow – ins and outs

It’s impossible to project your cash flow exactly as sales can fluctuate due to a number of reasons, but an estimate can allow you to project future trends. How much cash do you need to have in order to carry out your business, pay staff and suppliers, and make a profit? How much cash will you be receiving, and whether a cash flow finance facility might be a good option to cover the gap of slow payments? You’ll also need to take into account variables like seasonal dips and peaks and determine all those amounts to budget accordingly.

2. Invoice promptly

Make it a habit to invoice your customers as soon as the job is done, rather than at the end of the month.  Also ensure your invoice is easy to understand and your bank account number is visible.

3. Establish clear payment terms

Be clear about your payment terms, whether it’s seven, thirty, or sixty days, and include an action plan if payments become overdue.

4. Follow Up

Another way to improve slow payments is to follow up on accounts that fall outside your terms. With Key Factors cash flow finance the follow up of accounts is a part of our service, at no extra cost.

5. Consider factoring your invoices

Invoice Factoring can improve your cash flow by unlocking the cash tied up in your account receivables. This is where Key Factors can help. Send us your invoices, and we can pay you up to 80% of the invoice face value immediately – in as quick as 24 hours – so you don’t have to wait 30, 60 or even 90 days for your client to pay. You will receive the remaining 20% less our fee, when your client pays the invoice.https://www.keyfactors.com.au/services/factoring/

Key Factors can help manage your accounts while providing you with a constant cash flow. This allows you to focus on doing what you do best, which is growing your business. Get in touch with us today, and find out how we can help you.

As technology evolve so does the world of finance. Financial Technology, also known as FinTech, relies on software to provide financial services. Factoring, one of the world’s oldest method of finance is also going online with lots of new FinTech factoring companies entering the market.

Businesses looking for ways to raise working capital can find it quite daunting navigating through this new market. By understanding the difference between a traditional factoring company and a FinTech factoring company, you will be able to make a more informed choice.

FinTech factoring company

Factoring Company In PerthFinTech Factoring is the new kid on the block and has also been called ‘peer to peer funding’ or even ‘crowd funding’ in that a business lodges invoices it has raised via an online portal or digital wallet with the FinTech, who then checks the authenticity of the invoices before exposing them to its suite of investors to see if there is an appetite to fund against said invoices. The FinTech does not fund in its own right.

Most often acceptable invoices/debtors pertain to large and well-known companies and each transaction is structured by a composition of collaterals depending on the stability of the business and its debtors. The charges incurred can vary from both invoice to invoice and debtor to debtor, a version of ‘Rate for Risk’. Non-payment of an account will still result in a recourse of the debt back to the business, plus payment of interest and charges to accommodate both the FinTech and the investor[s].

Businesses considering FinTech factoring should be mindful of the start up nature of most FinTech factoring companies and the longevity of these providers. FinTech factoring also rely more on technology and online platforms to provide funding, so there may be no staff or phone support.

Traditional factoring company

At Key Factors we believe in good old fashion service and operate under a traditional factoring model. Although we invest in technology to improve user experience, our offices are staffed with actual people who are always on hand to take your call.

Our staff play a major part in everything that we do. From the initial consultation, right through to the daily management of clients accounts.

We believe in building long-term partnerships by providing flexible and personable financial solutions. Our facility has no minimum volume requirement, no long-term contracts, and no on-going monthly charges.

With over 30 years of experience and offices in Sydney, Melbourne, and Perth, your business is in safe hands.

Call 1300 884 100 today to find out more.

Managing business growth can come with a lot of pressure. While a sudden growth spurt of your business is always a wonderful thing, it’s important to be prepared – especially when your business is experiencing unexpected growth. You’ll need to reshuffle a lot of things around to succeed, from people’s roles to potentially all of your processes.

Read on to find out the three areas you’ll need to assess in order to successfully ride the growing wave of your business.

Processes And Systems

Cashflow Finance PerthDuring a time of rapid growth, your existing systems and processes simply don’t cut the mustard. Chances are they just weren’t designed to cope with high levels of activity. You need to come up with a new order that will help you give your customers the best experience possible.

When coming up with your new processes and systems, it’s a good idea to have an ethos that aims to create value for the business in the future. These processes and systems should reflect a future vision. Try to set aside time to figure out how to continue to create value for the business moving forward. Ask yourself what a sustainable and flourishing business should look like in the next six months to a year, then build the necessary conditions to make it happen.

Cash Flow

When your business grows, it’s essential you fully understand the movements and ebbs of your cash flow. The larger the business, the more complex the cash flow is, so you need to examine everything thoroughly. Once you completely comprehend the movements of your money, you can strategise about how to help your newly expanded business run smoothly

Some factors to consider when reviewing your cash flow include target pricing, and understanding the true costs of each sale. You might notice some services are costing you more money than you thought, or choose to focus your efforts on the most profitable products your business offers. It’s always worth keeping an inventory of your strongest performing products and generally set up a culture of observing your key performance indicators with the mind to replicate their success moving forward.

At this stage, it will be enormously beneficial for your business to partner up with financial experts. Not only can they help with a lot of complicated processes like weighing up future investments and cash flow, but they’ve seen and done it all before.

Key Factors provides growing businesses with constant cash flow by releasing the cash tied up in their unpaid invoices.  Clients can get up to 80% on the value of their invoices, in as quick as 24 hour by using a Debtor Finance facility.

Staff

You absolutely need to consider your staff during periods of rapid growth in your business. How can you ensure your team are able to handle big changes in their workflow and fulfil the changing needs of your company? It all boils down to a combination of your recruitment processes and the culture in your workplace. Stay true to the core cultural ethos of your business, but be flexible – give you and your business room to grow as well.

It’s also important to consider team dynamics. As a business grows, the start-up family vibe will inevitably change. A good way to avoid discord is to include your current staff in the hiring process to ensure everyone gets along and will be able to get the support they need to do a great job.

Want to learn more about how Key Factors can help your growing business?  Call 1300 884 100 now!

When a business sells its accounts receivable – or invoices – to a third-party (a ‘factor’) it’s called ‘factoring’. The transaction results in immediate access to cash for the business from the factor, who then collects the payments owed to the business from their customers.

Factoring is an option that increases cash flow for businesses of all sizes and from all kinds of industries. Factoring is used to purchase inventory, new equipment, pay employees, get on top of ATO obligations, or expand organisational operations. It has many benefits for businesses that are looking to grow and make faster decisions when it comes to their expansion.

Advantages of factoring finance

Apart from providing quick access to cash that a business would otherwise have wait for up to 90 days for, factoring can make a significant difference to operational efficiency and customer relationships in the long term. Moreover, factors provide free management of accounts collections from a company’s customers – a task that can be stressful and time-consuming. As a result, more time can be spent on making more efficient use of resources and growing business.

Factoring Finance PerthFactoring can also be a quick solution to raise vital working capital for growing companies going through expansion.

Why you should trust Key Factors for factoring finance

At Key Factors, we use over 30 years of experience in the field to make sure your business is in good hands. We are an independently owned Australian company, with a well-built reputation when it comes to providing our customers with flexible factoring solutions.

Most importantly, we’re reliable. Our aim is to make sure that slow payments don’t limit your business’s potential. For that reason, you can count on us to give you up to 80% of the value of your invoices in as quick as 24 hours.

Key Factors has offices in Sydney, Melbourne and Perth. Whether you’re looking into factoring to improve cash flow or take full advantage of your business’ growth potential, our friendly staff are here to answer all your questions. Call us on 1300 884 100 and speak to cash flow expert today.

Debt Factoring allows businesses access funds owed to them before it is paid by the debtor. It’s a way for businesses to access most of the money owed to them in their outstanding invoices and receive the rest when the customer pays.

How does debt factoring work?

Businesses that are in need of quick access to cash can sell their accounts receivables at a discounted rate for a fast injection of cash. Debt factoring allows businesses to continue their day-to-day operations without worrying about limited cashflow.

Invoices are forwarded to the factor like Key Factors who then provides up to 80 per cent on the face value of the invoice within 4 hours to the business to access as necessary. When the invoice is paid in full to the factor, the business receives the remaining 20 per cent less any accrued fees.

Businesses that are eligible for debt factoring must have B2B sales on credit terms, and invoices for the sale of goods or services that have been fully delivered.

Advantages

There are quite a few advantages to using debt factoring for businesses of all sizes.

  • Additional cash flow for growing companies
  • Bridge the gap of slow payments
  • Working capital for startup companies
  • Meet operating expenses
  • Get on top of ATO obligations

It’s a flexible alternative to traditional business loans as it is adjusted based on the business’ sales. Debt factoring can hugely benefit cash flow since businesses can get instant access to a large proportion of the money owed to them instead of waiting for payments to arrive. As a result of this early payment, discounts can also be removed or reduced.

Businesses that use debt factoring has better negotiating powers with suppliers by using the money they receive to take advantage of early payment discounts and bulk-buying opportunities.

One of the main advantages of debt factoring is to provide working capital for growing companies. Access to instant cash allows a growing company to buy more equipment, meet ongoing expenses and hire more staff to service the increase in workload.

Our service allows you to immediately convert sales invoices into cash to help your business operate and grow.
 
Debt Factoring Perth
 
Find out more about our debtor finance here.

Key Factors flexible debt factoring

  • No lock-in or long-term contracts
  • No minimum factoring volume
  • No ongoing monthly charges or annual charges
  • No quarterly audits
  • No property security
  • Fast 48 hours approval

With offices in Perth, Sydney, and Melbourne, our local state managers can provide a tailored cash flow solution to suit your business. Find out how Key Factors’ debt factoring, debtor finance and factoring finance and can benefit your business by contacting us today.