News & Media

Enjoy A Stress Free EOFY

At Key Factors, we understand the EOFY can be a stressful and busy time for any business. It is all about making sure you’re on top of your financial responsibilities while meeting legal requirements. If cash flow is tight, or your working capital needs a boost, Key Factors invoice factoring facility can help by advancing cash against your receivables.

Factoring Company PerthSmall businesses tend to take on a lot for themselves, from administration, to marketing and bookkeeping, so don’t let the EOFY creep up on you, be aware of time-frames and set reminders.

In order to run a successful business, not only should you be ahead of the EOFY, but think of it as more than just your tax deadline. Start thinking of it as an opportunity to breath a bit of life back into your business and a time to do some strategic thinking. With Key Factors flexible factoring facility the EOFY can be a positive time.

Left it late this year?

We don’t want you to miss anything in the rush so we’ve put together a handy checklist for you to work from.

Simple EOFY checklist for small businesses:

  • Set-up a meeting with your accountant
  • Provide your Business Activity Statement
  • Review your SuperStream requirements
  • Payroll: review any outstanding leave and long-service entitlements of staff
  • Check all employment contracts
  • Annual Income Tax, PAYG Withholding, Fringe Benefit Tax, and Goods and Services Tax reports or returns all need to be lodged
  • Calculate your depreciation expenses by collating your records of asset purchases and capital expenditure
  • Prepare a profit and loss sheet for the year – including revenues and expenses
  • Review outstanding debtors and creditors
  • Check all your client, customer or consumer contracts are all still valid
  • Get in touch with a factoring company if you need to improve your cash flow or are struggling to pay off fees due to slow-paying clients.

Be the best you can be:

  • Take a stock take of your inventor
  • Analyse your performance against the targets you set last year
  • Re-set goals for the following tax year
  • Review your business plan
  • Research changes to your industry, do you also need to develop to align?
  • Decide whether you’re in need of a new marketing strategy
  • Do a cash flow forecast for the following year and assess whether you could benefit from accessing your cash from unpaid invoices by using a factoring facility.

Avoid the rush

It’s time to get yourself prepared and take action in advance. By being ahead of the EOFY, there is a lot to gain, such as taking advantage of tax breaks or upgrading any essential equipment, as well as numerous others.

Why you should submit your taxes early and be prepared:

  • Get your hands on your refunds sooner: if you’re owed tax, it will be paid into your account shortly after submitting your application, therefore, the sooner you apply, the sooner you’ll receive anything owed to you
  • Expecting a bill oppose to a refund? It’s still best to deal with it and work out your finances accordingly, you can also assess how much you owe in advance and then have a saving goal in mind, or use Key Factors factoring serviceto pay it off with your accounts receivables.
  • Avoid any fines – late fees are charged, and you never know what could cause a last minute delay, so make sure yours are done well in advance.

Although Key Factors encourages you to get ahead of the EOFY, remember that factoring companies can help you stay on top of your finances all year round. We understand that expanding your business takes up a lot of time, that’s why, at Key Factors we want to help you focus on growing your company while we take care of your finances. Simply get in touch to see how we can help you.

We understand that every business is different, big or small, public or private, local or national, and we’ve helped all kinds reach their goals with flexible finance solutions. Some were looking for a permanent fixture to help with day-to-day business, others simply needed an extra hand while they went through a growth spurt, while many use us as and when they need us, at no extra charge. At Key Factors, we have numerous options to suit your business, whatever your setup and whatever you want to achieve.

We’re ready when you need us

Key Factors Pty LtdWe know that business growth opportunities or cash-flow problems can arise unexpectedly and businesses often don’t have much time for delayed reactions to these deadlines. There isn’t usually spare time for your stakeholders or many of the numerous company representatives to get involved in the decision process. This also applies to sitting around waiting for application approvals, thus our flexible options. Key Factors can sit in the background, ready for when we are needed, with no long-term contracts, no minimum volume and no ongoing monthly charges. Fast access to cash flow can make a huge difference to the success of your business, and it no longer needs to be complicated.

Try pay-as-you-go

Bank loans are often set to strict repayment plans, with very little flexibility and are not easy to initially achieve, they are also often secured by your corporate and even personal assets. This results in stakeholders and business partners being a little apprehensive with commitment and understandably thorough when it comes to risk assessment and figures. With factoring, you are only accessing money tied up in your accounts receivables, therefore the amount will solely depend on sales. If you would rather have no interest to pay or principal to repay, a pay-as-you-go option could be your solution.

Restrict your restrictions

Don’t be restricted by caps and limits, with factoring, your ability to grow is in your hands, not the hands of your bankers. Factoring is practically an unlimited source – with your cash availability representative of your sales volume.

Flexible finance

Key Factors is a flexible service that can be used for any amount of time on any percentage of your entire business. Plus, factoring can even be used alongside any pre-existing bank loans. This is extremely beneficial when you have numerous members of the company involved in your finances, as there is no long-term loans or detailed bank contracts everyone needs to agree on, just a simple solution with a percentage fee agreed upon in advance.

If you already have a set bank loan that you will be using, or if your loan amount is exhausted, don’t be put off – there is no reason you can’t still make the most of factoring cohesively. They can both work in conjunction with each other, neither causing restrictions. Factoring can give you the availability to grow and pursue new business opportunities.

Working with Key Factors

Keyfactors PerthOne such company that dealt with their cash flow restrictions, while still keeping all their stakeholders content came to us in April 2016. Discover how we helped improve their business and gave them the ability to grow using alternative finance.

Introducing *ABC Drill Pty Ltd – now an American owned business that has been operating in WA and Australia since the early 1960s.

The company background

ABC Drill Pty Ltd was originally set up as a local family business specialising in servicing, building and maintaining drilling rigs for the mining industry. With the massive mining expansion in WA after 2001 they grew considerably and were then taken over by an American based conglomerate late 2011.

ABC Drill Pty Ltd now builds maintains and services specialised drilling equipment to supply the Australian market, and are also looking at expanding and selling some of their rigs and technology to overseas clients of the US parent.

Joining forces

ABC Drill Pty Ltd now has the backing and strength of the US based parent, and their growth to date has been fully funded by the US company. They have no bank lending of any kind and own the majority of their plant and equipment, buildings and real estate. The parent company has of late, pushed for them to become more ‘cash flow’ self sufficient, hence their request for help from Key Factors.

This was a great opportunity for Key Factors to highlight their flexibility and give the company an opportunity to grow, using their cash tied up in their accounts receivables as and when needed.

Finding a cash flow solution

The major banks have all let ABC Drill Pty Ltd business pass, as they all wanted water tight security and guarantees from the US based parent and shareholders for any lending the WA company wanted.

Key Factors were able to structure a facility and security arrangements that suited both the local CFO and US based directors and shareholders. At Key Factors we have the flexibility to work around your business barriers.

A future with Key Factors

Key Factors hopes to be a long term partner for ABC Drill Pty Ltd, and expand their network of high worth and blue chip clients/debtors.

One of the major selling points that the US parent liked, was the ‘pay as you use’ nature of our facility. This is something we offer to all our clients, and can be the ideal compromise. Key Factors sits well as a ‘back stop’ arrangement, which can sit in the background (costing nothing) and be pulled out and used if and when required.

Find out if factoring could work well for your business by getting in touch with our expert team. We are available if and when you need our services and only charging a percentage of what you use.

ABC Drill Pty Ltd – facts and figures in further detail:

The American company has worldwide offices, employs over 3,500 staff worldwide, and has an annual turnover in the $ Billions of dollars. It specialises in the oil and gas industries around the globe.

Proposed limit

$750,000

ABC Drill Pty Ltd current directors

The majority of directors are US based, plus one Australian director.

The company is managed in Australia by the CFO

Shareholding

100% ownership held by “ XYZ US Inc” of the US

General company information

The Perth based company turns over in excess of $50 million in annual sales.

The facility for $750,000 was approved and documented here in our Perth office in April 2016.

In summary:

Whatever size your business and however many stakeholders you need to please, with Key Factors, you have the flexibility and options to choose from, depending on your requirements. With no lock-in or long-term contracts, no minimum volume and no annual charges, why not get in touch to discuss how we could solve your factoring problems?

Working with Key Factors could help your business grow and please your company stakeholders, with fast approval and no hidden fees – find us in Perth, Sydney and Melbourne.

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.

*Disclaimer: The client’s real business name and details are withheld for privacy reasons.

At Key Factors, we think the most important question is not what factoring is, but how factoring can benefit your business.

Often, the problem small businesses have is that if the business is surviving, the mindset is that there is no need to change, but what if instead of surviving, your business could be thriving? Factoring could be the missing key to offer you the steady cash flow you need to grow your enterprise.

Don’t let slow cash flow hold back your business

A large element to a successful business is keeping up with competitors, and making payments on time – you don’t want your cash flow to be the only thing holding you back… With the credit-controlled environment not appearing to be easing up any time soon, revenue can be delayed for up to ninety days, or more; making it tougher on SMEs.

It is often the case for SMEs to rely on existing customers and therefore are more likely to allow a little leeway when it comes to payment deadlines, but don’t let this be your pitfall. Factoring can allow you to do just this, while still giving you access to 80% of the invoice face value in as little as 24 hours. Key Factors then provides the remaining 20% when your customer pays, less any accrued charges – so you no longer need to worry about your business cash flow being tied up in accounts receivables and can focus on doing what you do best, which is growing your business!

Debtor Finance or Factoring, are one and the same – also known as cash flow finance or invoice finance. Whatever you want to call it, we offer many small businesses the funds they need, when they need them. Find out a little more about how we can make your funds immediately accessible to you.

 

 

There are numerous benefits to debtor factoring:

It’s not just about having a regular cash flow, it is all the things that come with it. The fact that, as a small business owner, when you know you can access cash, it will influence business decisions. Guaranteed access to your accounts receivables offers you the flexibility and ability to adapt your company whether your invoices have hit your bank account or not. We offer this simple solution to your cash flow problems with no lock-in or long-term contracts, no minimum volume and no ongoing monthly or annual charges, so there’ll be no more worrying about slow paying customers. Not only is your cash flow constant, but we also make your time management far easier – an efficient business doesn’t waste precious time chasing customers and the guarantee means you can put stricter rules in place. What’s more, when you have less financial worries, you can confidently pitch for future business, unlocking opportunities that you may have previously thought unfeasible.

It’s time to turn to debtor factoring

There is a reason why many Australian SME’s are turning to factoring. With small businesses constantly gaining momentum and making up huge industry numbers, it is no longer effective to work to fixed payments and strict deadlines. There is no flexibility when it comes to late payments, and this is becoming clearer. Therefore, business owners are seeking out alternative ways to keep on top of all their payments.

Consider your options

With Key Factors, you only pay for our service if and when you use us; giving you the chance to bridge the gap of slow payments at a minimal cost. The other option for small business owners is to offer their customers an incentive to pay on time or early – but there are no guarantees with this method. It can be extremely effective in the short-term, but if used continuously, can end up costing your business more than anticipated. It also means your business has to become a lot stricter, keeping track of payments and acting accordingly.

Adapting to suit your needs

We are simply meeting the markets needs – at Key Factors, we’ve adapted our business with you in mind. SME’s are in need of an alternative to traditional banking methods and are no longer relying on the big four. Owners are seeking out flexible alternatives, and for ways of preventing unpaid invoices effecting business expansion.

It is time to give Key Factors a call?

We can keep up with your cash flow needs and work alongside your company’s growth, giving you the ability to absorb the impact of later payments.

Still not 100% convinced? Why not see how other businesses have benefitted? And remember, there’s no sign up fee and no lock-in contracts, so what’s stopping you?

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.

If you are looking for a flexible factoring business in Australia, you might have come to the right place.

Although small business makes up a vital part of the economy, even the most successful Small and Medium Enterprises can struggle to be approved for the loans and get the funding they require to thrive and succeed.

Flexible factoring business

Factoring For Small BusinessWhether you’re an experienced lender or it’s your first time looking into financial help, factoring could be the answer for your business. Half of the battle for a growing business is their ability to keep up with demands without consistent cash flow. Factoring provides exactly that, it allows you to release cash tied up in unpaid invoices. Therefore, you are only accessing money that is owed to you. There is also a high level of flexibility when it comes to factoring. Key Factors as a factoring business doesn’t require a minimum volume, there are no lock-in or long-term contracts and no ongoing monthly or annual charges.

Are you avoiding the lending process?

Is there something putting you off the lending process? If you’re worried about risk-based interest that could take a turn at any time or you’re nervous about linking your property to your business, it’s time to take a look at a factoring business like Key Factors. There are no surprises and no hidden fees, plus you can use us as much or as little as you like! Find out more about how we work here.

We’re focused on what’s best for your business – take a look at this recent case study:

No matter what your current situation is as a business. We work with you to provide the best solution.

*ABC Pty Ltd is a family owned business with over 80 years of experience in the manufacturing industry. Their ability to service a wide range of clients with an array of products has allowed them to maintain a comprehensive customer base for three generations. As the new generation re-shapes the company’s focus, their ability to satisfy a continual stream of work is inhibited by lengthy trading terms which has restricted their increasing customer base.

With an existing over draft from one of the big four banks already accounting for a portion of their lending portfolio. They were looking for an alternative source of funds without having to increase their exposure to the bank, which required additional security over the director’s homes. Key Factors was able to assist in conjunction with the bank and enable the organic growth of their business to continue.

With no lock in contracts or minimum spends, ABC Pty Ltd had the freedom to use Key Factors as the need for additional capital increased. Key Factors has made available new opportunities for growth that didn’t exist under conventional lending agreements. While maintaining a close relationship with Key Factors they were able to satisfy their existing obligations with the bank and more importantly excel in providing the best service to their customers.

Background

Industry: Manufacturing

Annual Turnover: $5,000,000.00

Facility Limit: $200,000.00

In Summary:

Whether you don’t have time to wait for a loan approval, your bank has offered you a loan but it is too low, or you simply have a low credit rating, we have an option to suit you. With fast approval and a strong customer focus, a factoring business like Key Factors’ could be the bank alternative you’re looking for.

At Key Factors we care about your business. Take a look at who we have helped in the past with more case studies and find out if we’ve worked with businesses in your sector.

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.

Christmas should be all about enjoying a relaxing time with friends and family – the last thing you need is to spend the festive period worrying about whether your business will survive the New Year!

Cash Flow Finance PerthMany businesses discover their income slows over the festive season, but remember, that doesn’t mean your outgoings will come to a halt. Make sure you are prepared for all your regular payments, such as payroll and rent. It is easy to get ahead of ourselves with opportunities the New Year holds, but be careful to cover your daily payments first.

Depending on your sector, Christmas could be a busy time of year, or on the other hand, you could shut down for a number of weeks. Either way, you will usually be awaiting unpaid invoices, or have ordered and paid suppliers before your sales are made – this is where problems arise and issues need to be overcome quickly to avoid bills piling up.

It’s time to get savvy and avoid putting your business in imminent danger. There are some basic rules to keeping on top of your cash flow, but over the festive season, not sticking to them could be the make or break of your business. These rules should be nothing new, but we have found it is simply about being persistent, sticking to the basics and making sure you are prepared!

Simple steps to follow before the festive season hits:

  • Budgeting:Firstly, forecast your cash needs. Get a clear idea using realistic information – facts, figures and historical evidence are key to avoiding unrealistic budgets that your business can’t stick to.
  • Set strict payment policies:Many businesses are generous when they first start out, with no penalties for late payments. We believe that setting timely policies from the word go will show your customers that you mean business and makes sure they understand there will be consequences. The results of not doing this will mean having to offer early ‘Christmas payment discounts’ and other bonus’s to make sure you are paid on time and even then, there are no guarantees.
  • Bill quickly:The quicker you work on your end, the quicker you should receive payment – it pays to keep on top of every invoice.
  • Avoid impulse buys:Stick to necessities and don’t leave money in unnecessary stock – take regular stock takes and keep on top of products, cash locked up in stock could be put to good use.

Release your cash tied up in unpaid invoices

Even the most pro-active businesses can still struggle with cash flow, especially around the holidays. But this doesn’t mean you have to wait until you are forced to come up with a solution. Being prepared is a huge part of the battle. There are many alternative cash flow solutions, including factoring, which can release your tied up cash for very little cost.

New Year, fresh start

Wouldn’t you love to start the year as you mean to go on? With all the cash you’ve worked so hard for in hand, books up to date and nothing owed.
The Christmas break offers you time to reflect on your business goals. With all the motivation the New Year brings, it’s the perfect opportunity to assess how your previous year has gone, look at the results, review your cash flow and decide on your aims for the future. If you’re planning an expansion or to branch out the business, now is the time to discuss whether it is financially plausible.

How to avoid the inevitable

Be ahead of the game – issue invoices on time, make sure you have all reminders set before it gets too late and organise notifications for overdue invoices.

Remember, it is still not 100% guaranteed your invoices will be paid on time, even if you send notifications and charge for overdue payments. It is more a case of factoring these elements into your prediction and to have a buffer prepared for the circumstances. If you are already doing everything you can, but struggle with meeting payments on time due to tied up cash, factoring could be an option for your business. Having money locked up in unpaid invoices can lower the value of your company and prevent future growth and development.

Why use Key Factors?

Key Factors have been industry leaders for 26 years, offering expertise and reliable cash flow solutions. Plus, with no hidden fees and no minimum volume, you can use us if and when you need to.

Unlike many of our competitors, we are looking out for our clients, offering fast approval and no ongoing monthly or annual charges. We focus on simple, flexible alternative cash flow solutions so that you can focus on spending the holidays enjoying yourself, awaiting the New Year without worry.

We want your business to have the ability to meet it’s true potential all year round.

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.

At Key Factors, we’re happy to share all the facts behind our business from the very start. With no hidden fees, annual payments or minimum volume, unlike many other factoring companies, we have nothing to hide!

It’s as simple as that!

We allow you to focus on what you do best, which is growing your business – you can trust us to handle the rest. That’s business finance in it’s simplest form.

 

Take the simple bath to business finance.

Take the simple path to business finance with Key Factors.

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.

With numerous businesses successfully growing thanks to the help of Invoice Discounting, could it be time for your company to convert? There are many benefits that come with this flexible finance solution, from being able to better manage your cash flow, to improving your working capital.

We’ve taken a look at the facts and figures from the Debtor & Invoice Finance Association September Quarter and have put together a summary to show you how many businesses are moving towards Invoice Discounting and the turnover figures.

Consistently on the rise

Invoice Finance CompaniesThe total debtor financing turnover in the September 2015 quarter was $15.8 billion – an increase of 1.8% on the September 2014 quarter.

Invoice discounting turnover was $14.5 billion and factoring turnover was $1.3 billion. Total turnover for the 12 months to the end of September 2015 was $64.2 billion – an increase of 3.4% over the 12 months to the end of September 2014.

What are the stats in your state?

We’ve taken a look at how the statistics of turnover differ from state to state – at current NSW & ACT have the highest factoring and discounting turnover, at 38% in the September quarter. Victoria closely follows with 27% and Queensland at 17%. Western Australia also had an 11% turnover.

Is your industry already making the most of Invoice Discounting?

The Wholesale Trade industry had the highest percentage of receivables in debtor and invoice finance, with 38% for the September Quarter, followed by Manufacturing at 20%. Property & Business Services and Labour Hire also have a high percentage of receivables.
The statistics for Wholesale Trade are very similar for the percentage of discounting turnover, as to the percentage of receivables, again followed by Manufacturing at 19%, then Labour Hire and Property & Business Services at 10%.
When it came to the percentage of Factoring Turnover, Labour Hire has taken the lead at 27%, next to Wholesale Trade at 23%. Transport & Storage and Manufacturing also ranked highly in Factoring Turnover.

Facts about Key Factors

Key Factors offers a number of tailored cash flow solutions to suit each individual business. We can bridge the gap of slow payments, help you get on top of ATO obligations, and help your business reach its potential. Plus, with Key Factors, there are no long-term contracts, no minimum volume and no annual charges.

Read the report in full

To read the full DIFA Industry Data document for the September 2015 quarter, visit the DIFA website.

Still have a few questions?

The team at Key Factors will be happy to help explain anything further, or discuss how your company can get started. Simply give us a call on 1300 884 100, or fill out a short enquiry form today.

Banking a tradition

Australia has historically had a lending culture of never thinking beyond the big banks.

The first question asked by many business owners is: Who do I go to if I need finance for my growing business?

The answer most often being: My bank, or more specifically, one of the ‘Big Four’.

But that then leads to part two of the equation, which is one of, or a combination of the following barriers:

  1. They won’t lend to me (due to not having property or sufficient equity)
  2. They won’t give me enough money (the sum is too small to achieve my business goals)
  3. They don’t understand my business (they have not worked with my sector before)
  4. They make it too hard to do anything (the amount of paperwork and hoops to jump through can be near impossible.)

Factoring Key PerthWhilst it is easy to bash the banks, we must remember they have an important role to play, and every business; small, medium and large, will need to work with them in some capacity.

In Australia we are very fortunate that our major banks are very safe, profitable and global success stories.

So why do the big banks make it so difficult?

Many banks seem to make it very hard for the SME (small to medium enterprise) sector to access their facilities. At Key Factors, we think the reason is simply that they don’t need to. They are already large and successful, meaning they can be more selective in who their customers are, who they lend to, and as such don’t need to lend to low equity SMEs.

Bank alternatives to the rescue!

Alternatives to large banks are needed and many small businesses are now waking up to the fact that there may be more than one way to finance their growth. More and more small businesses are turning to non-bank/non-traditional lenders who offer something broader than an overdraft or term loan.

Compounding the problem

This is where we see a potential compounding of the problem. As these dynamic non-bank lenders grow, they, in many cases also need to fund their own growth, and so where do they turn? The banks, who provide funding lines at wholesale rates. Noting that for the bank it is easier to lend $100M to one customer than $1M to 100 customers, and these lending intermediaries are a good earn option for the majors.

However, for these non-bank lenders to remain complaint with their own lender, they by default and design increase their own compliance protocols and now we see these same four frustrations as detailed earlier appearing with customers of many non-bank lenders. Most specifically, three and four, which feeds two.

Key Factors – Free from influence

For over twenty-six years Key Factors has been helping Australian businesses, from a wide range of industries improve their cash flow and support growth. But unlike most, Key Factors remains privately owned and independent.

We are free from the outside influence of any other financial institutions that can cloud ones judgement. We make considered, objective and independent decisions that preserve and develop our client’s experience and relationship with Key Factors. And importantly we are consistent with our customers – which gives them confidence and comfort.

As a result the four ‘statements of frustration’ are removed. Let us explain how:

Case Study 1:

An all-Australian company with over 70 years combined experience in the building industry, designing and manufacturing of high-end products.

The Problem:

Directors are both homeowners and both have mortgages with their bank. All their bank was willing to provide the business with as a financing option was a corporate credit card facility limited at $50K. As explained to the client, for them [the Bank] it was an easier approval process than an overdraft but operating in the same way. With a business continuing to grow and an average receivables ledger in excess of $200K, the ability to fund this growth was clearly being constrained.

The Solution:

Keyfactors PerthKey Factors provided a flexible invoice finance facility with no long-term contracts, no minimum volume, no ongoing monthly charges, and no quarterly audits. By having a constant and more predictable cash flow, it allowed the company to pay out the credit card facility and pay suppliers on or ahead of time, thus giving them the ability to take up discount options for early payments and grow their business.

  • Industry: Design and Manufacturer of building products
  • Annual Turnover: $2,000,000
  • Facility Limit approved: $500,000

Case Study 2:

An Australian owned and operated company with distribution capabilities in all Australian States as well as New Zealand. This business offers innovative and advanced stormwater solutions backed by state-of-the-art research and technical support that comply with Australian and International standards.

The Problem:

The business currently has a debtor finance facility with a major lender, however compliance and ongoing reporting requirements are constantly dragging resources away from the day to day tasks of servicing customers and sales growth. The business owner feels that he is now working for the lender rather than running a business. He is looking for an alternative that provides the product benefits but without the time wasting.

The Solution:

Key Factors is looking to provide a flexible disclosed finance facility with no long-term contracts, no minimum volume, no ongoing monthly charges, no quarterly audits, no quarterly balance sheets and profit and loss reports, no monthly receivable ledger reconciliations and no quarterly budgets and cash flow forecasts.

  • Industry: Importer & Wholesaler of stormwater solutions
  • Annual Turnover: $6,000,000
  • Proposed Limit: $1M

Choosing a finance solution that matches your requirements

All business owners know that the life of their company goes though stages such as growth, stability and maturity – within these stages there are cycles of growth and contraction which can be internally and externally driven. As a business moves through these stages, business owners must ensure that they have financing in place that is able to match the business needs.

An overdraft, credit card and/or term loan do not move with you. They are fixed amounts that won’t account for your business growth and the need to put on more sales and staff, which can quickly be outgrown.

Are you a growing business?

For growing businesses, there can also be delays when dealing with these heavily compliance laden lenders. Approvals that can take months to be finalised with no guarantee the application in the end being approved. If they are approved then there is a need to take into account the ongoing compliance issues. This is going to be time better spent focusing on growing and ensuring the business is succeeding.

Don’t run the risk

We see the situation so often repeated, where long-term facilities secured by long-term assets [i.e., bricks and mortar] to fund the short-term issues of consistent cash flow and stock purchases. Short-term in the sense of these are liquid items moving through the business on a daily basis. It would make sense to accommodate these liquidity issues with the short-term asset and often ignored, your trade debtors.

What’s my alternative?

Options like debtor finance, on the other hand, follow your business cycles and as your business grows it grows with you.

To discover more about none traditional finance options, which could help your business grow, visit keyfactors.com.au

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.

Many industries are turning to Invoice Discounting to build their business – we’ve summarised the Debtor & Invoice Finance Association (DIFA) Industry Data, June 2015 Quarter, so you’ve got everything you need in a quick and easy-to-understand format!

On the up

Recent findings from the DIFA show that the June 2015 quarter was $15.8 billion – an increase of 6.4% on the June 2014 quarter.

Invoice DiscountingAccording to State

NSW & ACT were the states with the highest factoring and discounting turnover in the June 2015 quarter, at 35%, with Victoria at 31%, then Queensland at 17%, closely followed by WA at 12%.

Could your industry benefit?

During the June 2015 quarter, the Wholesale Trade industry had the highest percentage of discounting turnover, at 36%. Manufacturing and Labour Hire companies also made up a large percentage.

The Transport & Storage industry formed 12% of the June Quarter 2015 factoring turnover, as well as the Manufacturing Industry. Labour Hire companies led with 27%, followed by Wholesale Trade companies 24%.

What Key Factors have to offer

At Key Factors we help SMEs from a wide range of industries improve their cash flow with flexible disclosed invoice discounting. With offices all over Australia, our local state managers are able to provide a tailored cash flow solution to suit your business.

Key Factors key benefits

Keeping simple, flexible alternative

  • No lock-in or long-term contracts
  • No minimum volume
  • No ongoing monthly charges or annual charges
  • No quarterly audits

All the facts and figures

To read the full DIFA Industry Data document for June 2015 visit the DIFA website.

Speak to a member of our team

Want to learn more about how Key Factors could help your business? Call us now on 1300 884 100, or enquire online today.

With the sudden increase in wind up applications for SMEs – could you be in danger?

In recent months, businesses owing the ATO (Australian Tax Office) $100,000 have been wound up, as the new crackdown kicks in. This indicates a clear change of focus, likely to be due to the Government’s attempt to recover unpaid revenue.

With applications by the ATO to wind up companies soaring, the message is clear – get a payment plan in fast. Otherwise your company could be at risk.

Invoice Factoring Companies In PerthThe ATO are toughening up

With Western Australia poised for blow out, as debt levels surge and revenues dive, the ATO have been forced to get tough. Thus resulting in them taking quicker action to recover debts, such as company winding up proceedings and initiating bankruptcy proceedings.

Wind up action explained:

When a court orders a company to be wound up, an official liquidator is appointed to sell the company’s assets and distribute the resulting funds to the company’s creditors.

This action will be taken up if a company has failed to pay its debts and has not been able to make a suitable payment arrangement.

Why the sudden stricter rules?

Previously, the ATO would usually have waited for a company’s debt to them to reach around $340,000 before taking action. However the new standard is coming in on average at $93,000 – showing a huge drop.

The motivation – the government has a strong desire to recover funds.

Given the ATO is a substantial driver of the current volume of insolvency appointments, the expected increase in debt recovery action by the ATO results in taxpayers who fall behind not having so long to resolve issues before the ATO makes the decision for them.

After a business is wound-up, their assets are then liquidated in order to cover the unpaid tax bills.

Alternative Finance is a must – consider flexible invoice finance

Last year, thousands of businesses where closed down to meet unpaid tax bills, showing just how important it is to be able to access alternative finance for urgent commitments such as tax payments.

This policy is not a new one and was actually updated back in June 2013, stating that the Government would be taking firmer action, although, until now it appears that they had not been keeping on top of the stricter policy.

Who will it affect?

Small and medium sized businesses appear to be the ones suffering from the hit.
Many SMEs (Small Medium Enterprises) can show profit on paper, but still suffer from poor cash-flow. Not only can this mean they struggle with urgent payments, but also often prevents growth of a business. This is where Debtor Finance and flexible invoice finance comes in.

How the wind up action could affect you

Invoice Financing PerthNow the ATO have warned you that they will be taking legal action earlier, plus issuing penalties in order to collect unpaid revenue – you are lucky enough to be able to take action before it is too late.

Factoring can give you piece of mind and more opportunity.

How using a factoring company can prevent your company being affected…

The answer to avoiding the wind up action is simply – pay your ATO bills on time. However, sometimes this is easier said than done. If there is a gap between when a bill is due and when a clients payment is made, that is where the issue occurs.

Factoring enables you to draw funds from your accounts receivables to pay your ATO bills. To have this explained in further detail, click here.

Next steps:

With the number of wind-up applications lodged by the ATO steadily rising, as a small business you could be next.

For small businesses that looked at the July 31 tax payment deadline with dread – you’ll never want to feel that way again. Make sure you have funding in place to cover the pressing payments, oppose to scraping through, or worse, not making it to the following year.
Planning ahead is the key – address ways you can manage your cash flow more effectively, such as alternative finance to reduce risk of any financial shocks or hidden fees.

Far too many businesses are leaving it too late to seek assistance, take note from the recent ATO activity:-
1. The ATO are more aggressively pursuing debts, even as little as $93,000
2. A winding up application is the last step the ATO will take after the ATO has exhausted all other recovery options, so don’t leave it till then
3. Any business with an outstanding taxation debt and no current repayment arrangement in place is at risk of being wound up by the ATO.

Are you at risk?

The best opportunity for recovery for a business is to seek professional advice early.

Act now to find the funding you need to meet your tax obligations.

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.