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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.

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.

Debtor Financing2. 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.

3. 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.

4. 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.

5. 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 in Perth can allow you to do just that by releasing cash from your invoices.

6. 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.

7. 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.

8. 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.

Contact us at Key Factors, on 1300 884 100 and a local state manager will be more than happy to discuss your debtor financing needs and provide you with a quote to suit your requirements today.