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8 Benefits: Ways to Improve Working Capital with Debtor Financing

July 30, 2018

ways to improve working capital

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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 can allow you to do just that by releasing cash from your invoices.

  1. 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.

  1. 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.

  1. 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:

  1. Invoice your clients and send Key Factors a copy
  2. We advance you up to 80% of the invoice value in as quick as 4 hours
  3. The remaining 20% is credited to you when your customer pays us, less any accrued fees.

If you would like to know more about ways to improve your company’s working capital, contact us today!

Enquire now

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What our customers are saying

  • Key Factors flexible debtor finance have been very valuable to our business and so simple to use. To have the money the same day we need it is very useful. Their service is fantastic and the staff is always friendly and professional. We would highly recommend Key Factors to anyone looking into improving their business cash flow.

    - Director, Earthmoving Company, QLD
  • We used Key Factors when our bankers didn’t want to know us in October 2011, as we operate in an industry that was going to be affected by the introduction of the carbon tax.

    Traditional lenders were unable to deal with the uncertainty and risks.

    Key Factors understood the risk and assisted us with our cash flow for 5 months, which was great.

    We are still keeping the facility in place just in case knowing that it’s costing us nothing to do so.

     

    - Financial Controller, Solar Manufacturing Company, WA
  • Running a cleaning business and being very hands on, I don’t keep normal business hours. But with Key Factors I find I can always get a quick reply and they seem to always be there.

    • No call centres
    • No voice mail
    • No need to constantly explain myself to a new employee or account manager

    I always get an answer from those that answer the phones.

     

    - Director, Commercial Cleaning Company, NSW

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How does it work?

  • Invoice your clients for goods and services
  • Send a copy of your invoices to Key Factors
  • 80% of the invoice face value is made available to you within 24 hours, less a discount rate
  • The remaining 20% is provided when your customer pays, less any accrued charges
Apply now

FAQs

FAQs

How much does it cost?

We only charge a discount rate on what you use. There are no ongoing monthly charges or annual charges.

Do I need to factor all my invoices?

No, Key Factors flexibility means you are not required to submit all your invoices for funding.

What invoices can be considered for funding?

Invoices relating to business-to-business transactions can be considered, not consumer receivables. Invoices which are still within normal trading terms not... More info

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