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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.

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.