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One of the most difficult aspects of owning a business is managing finance admin, especially ATO Business Activity Statements (BAS) and their obligations. There are consequences if BAS is not submitted on time, and businesses may fall subject to interest penalties.

Factoring InvoicesFactoring invoices can help businesses meet their obligations with the ATO and pay the next quarterly payment [due on 28-April] on time.

Key Factors can help businesses get on top of their ATO obligations through factoring invoices.

Factoring invoices with Key Factors

Factoring invoices couldn’t be simpler with Key Factors, allowing you to release cash from your invoices with 3 easy steps:

  1. Invoice your clients and send Key Factors a copy
  2. Key Factors will transfer up to 80% of the invoice value to you in as quickly as 4 hours.
  3. Key Factors will credit you the remaining 20% less any accrued fees, when your customer pays us.

Getting On Top of ATO Obligations:

The business owner has specific responsibilities when it comes to getting on top of ATO obligations. We’ve outlined 4 useful tips provided by the ATO below:

1. Take responsibility

It is assumed that reasonable care is taken to meet your obligations – to provide accurate and complete information in all documents, including activity statements and tax returns.

2. Keep all required records for 5 years

Whether you’re a small business or not, you are required, by law, to retain the required business records. If you are unsure of what these records are, a full list can be found on the ATO website, depending on your business dealings. It is worth noting, that such records need to be kept for five years, and must be in English.

3. Lodge BAS by the due date

There are certain cut-offs to lodge most documents, and harsh penalties apply if they are lodged past the due date. However, if there are genuine reasons, as to why you are having difficulty adhering to these dates, or you cannot pay the amount owing on time, you must get in contact with the ATO prior to the due date to discuss your options. In some cases, extra time may be given to lodge and/or pay. Keep in mind that both tax returns and activity statements must be lodged on time, even if the amount owing cannot be paid at that time.

4. Pay by the due date

As per the previous point, all taxes and other amounts owed must also be paid by their respective due dates. Extra time to pay may be granted by the ATO in extenuating circumstances, potentially without interest charges – and only if the ATO are made aware your situation prior to the due date.

Advantages Of Factoring Invoices

The main advantage of factoring invoices is it allows businesses to get access to immediate payment, instead of waiting for up to 90 days for their clients to pay. Businesses can use the funds to get on top of their ATO obligations, pay staff on time, hire more employees to expand, and operate more efficiently.

Unlike traditional business loans or overdrafts where funding can be quite restricted, factoring invoices is more aligned to your revenue, so the more sales you make the more cash you can get.

Factoring invoices is also a quick and simple process, and funding can occur in as quickly as 4 hours.

With offices in Perth, Sydney, and Melbourne, our local State managers can provide a tailored cash flow solution to suit your business.

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.

Factoring is a financial term that refers to a type of financial transaction where a business sells its invoices to a third party called a Factor at a discount for immediate cash. It is especially useful to ensure businesses have adequate immediate cash flow to meet their current obligations. You may now also hear it called invoice finance, invoice discounting, debt factoring, debtor finance, but the origins of factoring can be traced back to the worlds earliest civilisations from North Africa and the Middle East (Mesopotamia) dating as far back as 5000 BC when farmers and merchants used factoring to maintain a stable cash flow when the change in seasons caused their business to be less frequent.

Invoice FinanceNot long after that in ancient Egypt and Greece debts were first acknowledged in writing, which became the foundation of early business credit. But it wasn’t until the Roman Empire came to prominance and the first debt collection specialists appeared. They received a commission from the traders of up to 1% of the money collected from the debtor.

With the expansion of the Roman Empire throughout Europe, the Romans spread this concept to new territories as their empire grew, with the term factoring coming from the latin word Facere: a doer, someone who does something on behalf of someone else.

In ancient Rome a factor had a similar role in the business world as the factors of today. Roman factors helped businessmen and farmers conduct financial transactions take goods on consignment and expand businesses if crops and goods had poor seasons.

For the next thousand years after the fall of the Roman Empire this early concept of factoring kept developing with the first factoring communities in France and England emerging in the 13th and 14th centuries respectively. One of England’s first factoring houses, Blackwell Hall based in London operated as agents for the woollen trade.

As factoring became prominent in Elizabethan times, global traders such as The East India Trading Company and Hudson Bay Company both used factoring to fund their commercial empires. Whilst in France, King Charles VII had 300 factors to manage their countries trade.

An interesting fact is that factoring funded the Mayflower’s voyage to the Americas and so the pilgrims were the first Americans to ever use factoring and as such commencing the era of common law factoring in America.

The process continued to evolve until the 19th century when ‘Del Credere’ the foundation of modern factoring by independent factor companies was established. This is the term used to describe the practice where factoring companies were no longer aligned to any single industry and evolved to fund multiple growth sectors.

Factoring returned on mass in Europe after WWII when business was growing at a rapid rate but cash was in short supply.

TODAY

We now see factoring based in over 90 countries around the world and it has become and remains one of the world’s most popular methods of alternative finance. Governments, Reserve Banks and Financial Regulators from around the world view factoring as a safe and secure method of financing trade both domestic and internationally and it is seen as an instrumental tool to support the growth of SME’s.

Now also known as invoice finance, invoice discounting, debt factoring, debtor finance, the product continues to evolve to accommodate an ever changing landscape but the foundations continue, supporting business navigate through the challenges of cash flow management and credit terms both offered and expected.

KEY FACTORS BRIEF

In Australia, companies like Key Factors have dominated the scene for the past three decades. Key Factors was established in 1989 and is Australia’s largest privately owned and non bank aligned Factor Company, based in WA and with offices in Sydney, Melbourne and Brisbane. We assist Australian businesses throughout a broad range of industries, release funds tied up in unpaid invoices, consequently improving cash flow.

Businesses that qualify for Key Factors assistance must have B2B sales on credit terms, and the invoices provided must be for goods and services that have been completely delivered. Once verification of the invoices has occurred we provide up to 80% of the invoice value to the business in as quick as 4 hours. The remaining 20% is provided upon the invoice being paid in full to Key Factors (minus any fees accrued).

Debt factoring is very beneficial as it allows businesses to have instant access to money owed, and this money can then be used to pay suppliers, reinvest, and take advantage of early payment discounts.  Factoring can help your business to grow to its best potential.

If you are concerned about a lack of cash flow due to slow payment of invoices, speak to our specialists at Key Factors. We offer:

  • No lock in contracts
  • No audits ever
  • No minimum volume
  • No ongoing monthly charges
  • No property security
  • Application approval within 48 hours

Key Factors has experience in a number of industries including, Manufacturing and Wholesale, Mining, Transport, IT and Business Services, and Recruitment and Labour hire.  Those companies that would benefit most from Key Factors debt invoicing services would generally have an annual sales turnover ranging $500,000 to $30 million with a significant proportion of customers providing goods and services on accounts.

Want to learn more about how Key Factors could help your business? Speak to an expert cash flow manager now on 1300 884 100, or enquire online today.

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.

If you think getting funds within 24 hours of factoring your invoices is fast, think again.  Key Factors is looking to introduce real-time payments to allow instant funds transfers.

As part of the New Payments Platform (NPP), instant or ‘real-time’ payments between some Australian bank accounts will be possible 24/7.

Why does transferring funds between different Banks take so long?

Currently, when we transfer factoring funds into your nominated account, it generally hits your account the next business day. That’s because different Banks transfer funds at different times of the day and only during business hours.

How will Real-Time Payments under (NPP) work?

At present, when we transfer factoring proceeds to a customer with the same bank, funds are received almost instantly.

Under the New Payments Platform (NPP), the same can apply even if our customers do not bank with the same bank. That’s because NPP acts like a secured network between participating financial institutions, allowing funds to be transferred between accounts immediately.

Which Banks have signed up?

The big four banks have all signed up along with 9 other financial institutions listed below:

  • ANZ
  • Commonwealth Bank of Australia
  • NAB
  • Westpac
  • RBA
  • ASL
  • Bendigo/Adelaide Bank
  • Citigroup
  • Cuscal
  • HSBC
  • Indue
  • ING Direct
  • Macquarie Bank

What are the advantages of Real-Time Payments and when will it take effect?

The ability to instantly receive funds will ensure your business can meet any unexpected expenses or opportunities that may arise from time to time.

Getting instant cash in your bank account can be as easy as 1 2 3:

  1. Invoice your clients for sale of goods or services and send Key Factors a copy
  2. Key Factors will credit your account with up to 80% of the invoice value.
  3. The remaining 20% is provided once your client pays us, less any accrued fees.

The New Payments Platform (NPP) is set to launch early next year and all participating banks are going through the final stages of testing.  Key Factors will have our finger on the pulse so our customers can reap the benefits of Real-Time payments.

Key Factors Perth

 

How can you qualify?

Businesses benefiting from Key Factors flexible cash flow finance generally have a high level of customers on accounts for the provision of goods or services and have an annual sales turnover ranging from $500,000 to $30 Million.

At Key Factors, we understand small business loans Australia! As a leading cash flow finance company with over 30 years of experience 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.

Cashflow finance allows you to convert sales invoices into cash without needing to wait for up to 90 days for your clients to pay. Whether you’re wanting to grow your business or just have a more regular easily accessible cashflow to cover overheads, cashflow finance is the answer.

How does cashflow finance work?

Key Factors Pty Ltd

How much does cashflow finance cost?

With Key Factors’cash flow finance, we only charge a flat daily fee of 0.1% per day, which is only payable if you use it. As an example, on a $1,000 invoice which is paid 30 days after it is factored, the total cost incurred would be $30 (3%). There are no monthly admin fees, annual fees or early exit penalties.

What are the advantages?

Some clients can take up to 90 days to pay, which can put a strain on your business cashflow. Cashflow finance enables you to get immediate access to cash tied up in your unpaid invoices, so you can get on top of ATO obligations, meet employee wages, and most importantly grow your business.

You never know when your business is going to have a financial emergency, requiring urgent access to cash. Flexible cashflow finance provides you with you peace-of-mind by converting your sales into cash in as quick as 4 hours. Additional cashflow can be beneficial to your business, allowing it to grow, avoid interruptions and challenges and cover the gap of slow payments from customers.

Cashflow Finance For Small Business

The main advantages of financing from Key Factors are:

  • No minimum monthly usage requirement and you will only be charged for what you use.
  • No lock-in contracts and no early exit penalties.
  • No quarterly audits and no property security.

Running a business can be very time consuming, and you often don’t have time to chase clients for payments. With Key Factors’ cashflow finance we will also help with the follow up of accounts, saving you time and stress.

How do you qualify?

Companies benefiting from Key Factors flexible cashflow finance service generally have a high level of customers on accounts for the provision of goods or services and have an annual sales turnover ranging from $500,000 to $30 Million.

 

Apply online

A significant benefit of Key Factors’ cashflow finance facility is the easy online approval process, meaning you can apply for finance 24-hours-a-day and 7-days-a-week.

To find out more about cashflow finance and how it can improve your business cashflow, contact Key Factors today. We can discuss a tailored solution to suit your business needs and arrange approval in as quick as 48 hours.

 

Debtor FactoringA popular form of small business financing is debtor factoring – a process that involves using a company’s accounts receivable as collateral in order to fund the business. Through this, cash flow is released from outstanding invoices in as quick as 4 hours from a factoring company like Key Factors. SMEs often turn to debtor factoring as limited cash flow can hold their business back and restrict them from reaching their full potential.

Here’s How Debtor Factoring Can Keep Your Business Afloat:

1. Additional cash flow to fund growth

Debtor factoring is an excellent source of small business financing, providing immediate access to cash flow allowing businesses to fund growth and company expenses.

2. Bridge the gap of slow payments

With some customers taking up to 90 days to make payments, it can cause a serious strain on a business’ cash flow. By using debtor factoring with a factoring company like Key Factors, businesses can bridge the gap of slow payments and get up to 80% of the invoice value in as quick as 4 hours.

3. Meet operating expenses

To keep a business running there are ongoing operating expenses that must be paid including payroll, taxes, rent, and employees benefits. It’s essential that your business has access to sufficient cash flow to meet these expenses.

4. Get on top of ATO obligations

Small business finance through debt factoring can help businesses get on top of ATO obligations and Business Activity Statements.

5. Increase your buying power

With access to funds, your business can not only stay afloat but get ahead and increase its buying power. This can give your businesses a confidence boost and more clarity when planning long-term strategies.

6. Streamline the administration process

Working with a debtor factoring company can also minimise the stress of managing customers outstanding debts. As apart of our service Key Factors will help follow up payments with your customers on your behalf, so you can focus on what you do best which is growing your business.

Securing business finance from Banks can take months to get approved and comes with repayments, long-term contracts and complex conditions. Debtor factoring with Key Factors can be approved in as quick as 24 hours, and funding can occur in 4 hours with no locked-in or long-term contracts.

Small Business Financing made easy

With offices in Sydney, Melbourne, and Perth, our local State managers can provide tailored small business financing to suit most Australian businesses.

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.