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It has now been widely reported that global supply chain financier, Greensill Capital has filed for insolvency in the UK. This news has reportedly shocked many in the [global] Cash Flow Finance and Supply Chain Finance industry. 

It would not have taken too much to see that this demise was inevitable. 

Greensill came from nowhere to become a multi Hundred Billion Pound worldwide business in next to no time. It had highprofile politicians fronting the limelight, numerous executive jets, and high-flying entrepreneurs as its biggest clients. 

Even in Australia, it has been reported that companies like Telstra, CIMIC, Whyalla Steelworks, and Australian Rail & Track were amongst its clientele. 

All it took was one Trade Insurer to pull its Trade Credit Insurance for the whole house of cards to start crumbling. The final crash is still developing, the fallout will be massive. Just goes to show that sticking to fundamentals and easy-to understand lending principles is the only way.

Greensill grew by developing and selling hybrid securitisation investment style bonds into the market backed by its Supply Chain Finance products, taking a cut at every step. The only issue was that just one client comprised a huge portion of Greensill’s overall exposure. This client/borrower also came from nowhere in next to no time. 

Same story, Same ending, and Same no assets of real value.

Think back to the GFC with the securitization and marketing of hybrid Junk Bonds with no real underlying value. At the time, this scenario was often reported as just “smoke and mirrors” to fool investors and make a quick buck.

Here in Australia, many factoring companies also went headfirst into the Supply Chain Finance market. Thinking this is the way to go, spruiking its benefits to all and sundry. 

The only real exception was Key Factors who stuck to what it knew best, cash flow finance to help SMEs with their cash flow. 

Key Factors resisted the get rich quick brigade and continued to only offer what it knew to be great products that have withstood the test of time, since 1989 in fact. 

Key Factors has never relied on, nor asked its clients to take out trade credit insurance. 

Key Factors have always based their decisions on the quality of the debtors, and their trading history, not on some insurance policy whose only real worth was for the broker who sold it.

In fact, Key Factors bucks the trend in the Australian market as it does not source business from brokers or aggregators. Unlike virtually all its competitors that [almost] wholly rely on third parties for all their business referrals, and where those referrals could be based on the commissions to be earned, not on the benefit and product quality for the intending client. The Banking Royal Commission exposed enough of that going on. 

It will be interesting to see how the market changes over the next 6 to 12 months as the others move away from their Supply Chain Finance love affair, but sadly also the fate of many SMEs caught up in the fallout of this current Greensill collapse. 

If you are in the market for Cash Flow Finance that works, and you are done sitting on your unpaid invoices, Key Factors is the only company to really consider.

By partnering with Key Factors, you are working with a well-founded cash flow finance company that centers on basic lending fundamentals. Absolutely no reliance on debtor insurance. The quality of your debtors is paramount.

Key Factors has been in business since 1989.

Key Factors does not source business from commissiondriven markets.

Key Factors does not ask its clients for debtor [trade credit] insurance.

Key Factors relies on good old fashion basic common sense, debtor quality, and spread. 

The old saying: Never put all your eggs in the one basket, has the same, if not, more relevance today than ever before. 

Partner with a cash flow finance provider that has stood the test of time. Call 1300 884 100 or complete our enquiry form and a cash flow expert will be in touch.

With COVID-19 taking its toll on businesses throughout the country, JobKeeper became a lifeline for many companies and their employees. As cash flow dried up and employers were forced to make the hard decision on scaling back, the JobKeeper subsidy became a safety net for more than 3.5 million Australians. 

Jobkeeper was never intended to be a permanent solution and the tap could be turned off in less than 5 weeks. With more than 1.5 million workers still receiving the subsidy today, businesses need to start seeking alternative funding solutions such as debtor financing to ensure they have sufficient cash flow to continue to run their business.

Use Debtor Financing To Cover The Gap

Debtor financing eases the strain on your cash flow by allowing you to convert sales invoices into immediate cash, rather than waiting 30, 60, or even 90 days, for your clients to pay their invoices.

This helps keep cash moving through the business, so you can pay your employees, manage your ATO obligations, meet operating expenses, and even grow during this challenging time. 

With the JobKeeper payment potentially coming to an end, having a more predictable cash flow stream could be the difference between retaining or losing some of your best workers.

How Does Key Factors Debtor Financing Works?

Key Factors debtor financing gives you quick access to money you have already earned in 3 simple steps:

  1. Invoice your clients as normal, and send us copies of invoices you want to be funded.
  2. Key Factors will credit your account with up to 80% of the invoice value, in as quick as 4 hours.
  3. We will transfer you the remaining 20% less any accrued fees when your client pays us.

When you use Key Factors debtor financing, you are working with a company that has over 31 years of experience in helping Australian businesses improve their cash flow.

Who Does Debtor Financing Suit?

We help small to medium businesses, including start-ups, cover the gap of slow-paying clients and manage their cash flow needs. 

Companies benefiting from Key Factors debtor financing generally have a high level of customers on accounts and have an average monthly turnover of $50,000 or more.

Businesses that have a growing pipeline or need to turn their business around by improving their cash flow, should also look into debtor financing. 

With the uncertainty of the JobKeeper subsidy potentially ending, seeking alternative funding solutions to cover the gap should be a high priority for businesses right now.

Benefits of Key Factors’ Debtor Financing

If you are looking for a fast and flexible business finance solution, you should speak to our team to explore the following benefits in working with us:

No Hidden Fees: We are transparent about fees from the start so there are no nasty surprises. Use our funding calculator to work out how much funding you can get and how much it is going to cost.  

No Property Security: Use your accounts receivable and not your family home to finance your business. 

No Lock-in Contracts:  Use us when you need us and leave us when you don’t.

No Quarterly Audits or Intrusive Shadow Software: You retain the freedom to run your business, while we help to manage your factored accounts and funding requirements.

Fast Approval: Don’t expect to wait weeks for approval. We aim to get back to you within 24 to 48 hours of receiving your application.

Fast Funding: Invoices are processed the same day and funding of invoices can occur in as quick as 4 hours.

Flexible Funding: Use debtor financing as much or as little as you’d like to meet your cash flow needs. We allow selective factoring so you are not required to finance all of your invoices.

Since 1989, Key Factors has grown to become one of Australia’s leading debtor finance companies.  We are independently owned with offices in Sydney, Perth, Melbourne, and Brisbane. We work with businesses Australia-wide in a range of industries including recruitment, labour-hire, manufacturing, wholesale, transport, business services, and more. 

Our personalised financial solutions are tailored to meet your unique needs, and our friendly cash flow experts are always on hand to assist you at every stage of your business journey.  

We understand the challenges small and medium businesses are facing, particularly during these uncertain times. Contact us today by calling 1300 884 100, to discuss how you can turn your unpaid invoices into cash and immediately improve your cash flow.