News & Media

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.

Factoring FinanceThe latest statistics for debtor finance, discounting, and factoring finance in the December 2014 quarter released by the Debtor & Invoice Finance Association (DIFA) was $17.2 billion, which is an increase of 10.7% in comparison to the September 2014 quarter.

NSW & ACT, followed by VIC, QLD, & WA were states with the highest invoice factoring turnover, in the December 2014 quarter.

Industries with the highest percentage of factoring turnover includes Labour Hire making up 29%, Wholesale Trade 22%, Manufacturing 13% and Transport & Storage 13%.

As SMEs continue to experience challenging business environments, factoring finance to free up working capital provides an alternative and immediate source of business cash flow to meet sales demand and operating expenses.

By adopting invoice factoring companies can get cash for their unpaid invoices, in as quick as 24 hours.

The full DIFA Statistical Update- December Quarter 2014 is available at:

http://difa.asn.au/wp-content/uploads/2015/03/DIFA-Statistical-Update-Dec14.pdf

Key Factors fast and flexible factoring requires with no lock-in or long-term contracts, no minimum volume or usage and no quarterly audits.

Getting your invoices paid is as easy as 1 2 3

1) Simply invoice your clients and send us a copy.

2) Up to 80% on the invoice face value is made available in as quick as 24 hours.

3) The remainder 20% is provided when your customer pays.

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.

The latest statistics for debtors finance in the June 2013 quarter, released by the Debtor & Invoice Finance Association (DIFA) was $15.4 billion, which is an increase of 5.7% in comparison to the March 2013 quarter.

Debtors FinanceDebtors finance an alternative source of cash flow

As Small to Medium Enterprises in Australia, continue to experience challenging business environments, debtors finance to free up working capital, provides an alternative source of cash flow to meet sales demand, and operational expenses.

DIFA Chairman, Mr. Lee Clarke said “We continue to see Australian businesses take advantages of the benefits afforded through debtors finance and this trend is set to continue as SMEs becomes more familiar with this means to leverage their books to enhance cash flow”.

How debtors finance works?

  1. You invoice your customers for goods or services.
  2. You send a copy of your invoice to a factor (like Key Factors).
  3. The factor then gives you up to 80% of the value of the invoice.
  4. The remaining 20% of the invoice is credited to you as soon as the customer pays, less any accrued fees.

NSW & ACT, followed by VIC, QLD, & WA were states with the highest factoring turnover, in the June 2013 quarter.

Industries with the highest percentage of factoring turnover includes Labour Hire making up 35%, Wholesale Trade 15%, Manufacturing 12% and Transport & Storage 12%.

By factoring, you can get cash for unpaid invoices in as quick as 24 hours and cover the gap of late payments, meet operating expenses and grow.

The full DIFA Statistical Update- June Quarter 2013 is available at:
http://www.factorsanddiscounters.com/downloads/DIFAStatUpdate_JuneQtr2013.pdf

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.