News & Media

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.

Invoice financing has become an increasingly popular solution as a flexible funding alternative for businesses. Invoice financing Australia allows a third party like Key Factors to purchase the accounts receivables of a business at discounted rate and provide immediate access to cash.

Invoice Financing AustraliaHow Can Invoice Financing Australia Benefit Businesses?

Invest resources in growing your business

Invoice financing Australia unlocks cash from unpaid sales invoices so businesses can have access to immediate working capital to invest in growing the company and hire new staff to expand operations. Additional cash flow also allows a business to keep up with competitors and industry trends through new technology.

Flexible funding

Key Factors requires no quarterly audits, no lock in or long term contracts, charging only a discount rate on usage with no minimum volume when submitting invoices for funding. Traditional financing options rely on the business owner’s financial position and personal assets, while invoice financing Australia with Key Factors is more reliant on the strength of the ledger.

Increase cash flow

Invoice financing Australia with Key Factors offers 48 hour approval and 80% of the invoice value credited within as little as 24 hours, with the remaining 20% provided once the customer pays, less any accrued charges. The solution bridges the gap of unpaid customer invoices to bring the business an increase of cash flow. An influx of cash flow is important to maintain the successful running of a business and meeting operating expenses, so the business can focus on servicing growth and expansion.

Save time and money with professional receivable management

Businesses can save time and money with professional receivable management at Key Factors. Our friendly staff follows up on invoice payments so that you can have more time to focus on growing your business instead of waiting for customers to make payments.

Fast approval and funding

With Key Factors Invoice financing Australia, the factoring process is fast and efficient with approval granted within 48 hours and funding in as quick as 24 hours. Loans from banks can take months to get approved and come with repayments, long-term contracts and terms and conditions, but factoring can provide businesses with cash within days! It’s a faster flexible funding solution that is designed to grow with your business.

With offices in Perth, Sydney, and Melbourne, our local State managers can provide a tailored invoice financing solution 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.

One in five new businesses will fail within the first year of business. There are many reasons that a company can fail. Some are out of your control. According to ASIC report on corporate insolvencies 2016-2017, the top 3 reasons why businesses fail is inadequate cash flow, poor strategic management, and poor financial control. Don’t let this dishearten you, we have some excellent advice on how business invoice factoring can help provide adequate cash flow for your new business venture.

How Does Business Invoice Factoring Work?

Invoice your clients for work fully completed or goods delivered and send Key Factors a copy. We will advance you up to 80% of the invoice value in as quick as 4 hours. Once your client pays the invoice in full, we will credit you the remaining 20% less any accrued fees.

invoice factoringHow Can Business Invoice Factoring Help My Business?

By using business invoice factoring, you will be able to get immediate cash for your sales invoices. You can improve your cash flow and use it to invest in hiring more staff and buy essential equipment to expand.

Other Benefits Of Business Invoice Factoring

In the early stages of running your business, it is vital to ensure your business is equipped to take on new opportunities. Business invoice factoring can help to maximize your company growth by providing the cash-flow you need to keep the wheels in motion and stay on top of operating expenses.

Key Factors business invoice factoring can increase your working capital and allow you to service larger clients by converting unpaid invoices into cash. You can be more confident in saying ‘yes’ to entering into a contract knowing you will have a more predictable cash flow to service ongoing work.

As your client base grows your staff requirements will also increase. Business invoice factoring gives you the cash readily available to pay your wages on time.

So take the pressure off and concentrate on bringing in the big clients while we take care of your business invoice factoring. Give us a call today on 1300 884 100 or contact us to find out more.

Invoice Factoring Perth55.8 days is the average payment terms for Australian Businesses, according to the most recent survey by Dun & Bradstreet June 2013. So what can businesses do to ensure they get invoices paid quicker and maintain a healthy cash flow?

Secure cash flow financing

Key Factors flexible cash flow financing allows businesses to release the cash tied up in their unpaid invoices in as quick as 24 hours, without the need of real estate security or long-term contracts. Instead of waiting 30, 60 or even 90 days to get paid businesses can get up to 80% on the value of their invoices credited to their account, when they need it.

Invoice promptly and correctly

The sooner the invoice is issued and is received by your customers the sooner you will get paid. Ensuring all information on the invoice is correct can also get your invoices processed more promptly with minimal delays. Electronic invoicing is quick and easy to track and is a viable option for businesses wanting to reduce processing & delivery time of invoices.

Know your customers

When a company has clients on accounts they are essentially providing credit, hence it is important to know the credit worthiness of their customers. At Key Factors we conduct essential background checks & analyst on our clients debtors to limit their risk.

Follow up on payments

Late payments causes strain on a business’s cash flow. So when your customers pay outside your terms, it is always best to follow up. Simple but effective follow up methods includes, a telephone call, and posting out statements to clients outlining amounts owing and the date it was due. Key Factors conducts follow up on payments on behalf of our clients, allowing them to focus on what they do best and grow their business.

Don’t let slow payments hold your business back

Late payments have a major impact on the business’s ability to meet operational expenses and hinder investments for growth. Hiring new staff to meet demands is also not an option when cash flow is limited.

Find out more about our cash flow financing today by calling 1300 884 100 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.

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.