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When your business is struggling with the cash flow it needs to grow, or even simply to survive during trying times, it may be tempting to use your house to help you finance your business. A secured business loan might aid in providing your business with the cash injection it needs, but it comes with a high price of potentially losing your home if you can’t repay the loan.

It’s important to understand exactly what you’re getting into if you do apply for a secured business loan, and you should also know there’s another option. With invoice financing, you can use your sales invoices as security to get access to immediate cash flow, instead of using your home to fund your business.

Why take the chance of losing your home when you can simply release cash from your invoices, getting prompt access to money that you’ve already earned? Let’s take a closer look at the difference between a secured business loan and using accounts receivable as collateral to finance your business.

What Is a Secured Business Loan?

When you take out a secured business loan, you have to offer some form of assets as collateral. Assets commonly used for a secured business loan are a commercial property, residential property, vehicles, and equipment. In some cases, banks tend to also take a blanket security over all the assets of the company.

Secured loans make the transaction less risky for the lending institution, as they can take the asset to recoup any losses when you are unable to make your loan repayments. Business owners who use their home as collateral can run the risk of losing their home if they default. If the bank or lending institution has a blanket security over all the assets of the company, you could also run the risk of losing your business as well.

Key Factors invoice financing does not require property security, or a blanket security over all the company’s assets. It is a great option for those business owners who are seeking a more flexible business finance option.

What Is Invoice Financing and How Does It Work?

Invoice financing is a way to create cash flow based on your outstanding invoices. In other words, it gives you access to the money you’ve already earned for the sale of goods delivered and services rendered before your customers pay their invoices. It bridges the slow payments gap and allows you to pay your bills, cover ATO obligations, buy more inventory, and pay wages on time.

 With Key Factors, the invoice financing process is simple:

  • Invoice your clients as normal and send us a copy
  • In as quick as 4 hours, we can advance you with up to 80% of the invoice value
  • We will then credit your account with the remaining 20%, less any accrued fees, when your customer pays us

For more than 30 years, Key Factors has been helping small and medium businesses improve their cash flow with invoice financing. We make the process simple and transparent with no lock-in contracts, no quarterly audits, and no minimum factoring volume.

Key Factors Invoice Financing Security Requirements

Key Factors takes your accounts receivables as collateral, so you don’t have to put your house or other properties at risk.

Business owners using commercial or residential property to fund their business should look into invoice financing to free up their assets.

Your invoice financing facility can also be set up in conjunction with your current financial arrangements, as security is only taken over the receivables and not over all the company’s assets.

Benefits of Invoice Financing Compared to Secured Business Loans

It’s important to explore your business financing options, particularly as there are some distinct benefits when comparing invoicing financing with a secured business loan.

The Key Factors invoice financing difference:

  • No property security.
  • You can get an approval with Key Factors in as quick as 48 hours, compared to banks or other lenders where you could be waiting weeks for a response.
  • There are no monthly interest repayments or admin fees, and you will only pay for what you use.
  • We are transparent about fees from the very start, so you’ll know how much each transaction will cost.
  • There are no minimum monthly factoring requirements, so you’ll have the flexibility to send us as much or as little invoices for funding as you need.
  • There is no lock-in contract and no minimum term, unlike secured business loans.
  • Funding for invoices in as quickly as 4 hours.
  • Our friendly local team is only a phone call away.

Conclusion

Key Factors have been offering customised invoice financing solutions to Australian businesses since 1989. We are the country’s leading independently owned invoice financing company. We credit that to our dedication to delivering a seamless customer experience, our commitment to a transparent process, and our wonderful staff, who truly care about helping small businesses succeed.

If you are a business owner that simply wants to explore your options and has a monthly turnover ranging from $50,000 to $4,000,0000, invoice financing may be an ideal solution for your business. Contact us today by calling 1300-884-100 or fill out an enquiry form and an invoice financing expert will be in touch to discuss how you can improve your business cash flow without using your home as collateral.

So you have won a huge opportunity to grow your business with a new client, you are incredibly excited but wait! Where will you get the cash-flow to pay your suppliers and staff?

Invoice factoring is vital to help grow your business as it has many benefits to make business deals less stressful on you, your business partners and on your bank account. Invoice factoring is easier than getting a business loan from a bank and can also give you immediate cash for your sales invoices. It also opens more opportunities to work with higher paying clients and larger projects as your business grows.

What is invoice factoring?

Invoice factoring is a type of debtor finance in which a business sells its accounts receivables to a third party like Key Factors for immediate cash. This process enables your business to cover the gap of slow payments instead of waiting up to 90 days to get paid. With Key Factors invoice factoring you can get up to 80% of the invoice value in as quick as 4 hours, and the remaining 20% is credited to you once the customer pays.

Here are a few helpful tips on how to grow your business with invoice factoring.

 

Grow your business with upfront working capital

With invoice factoring, it gives you upfront funds to be able to put money where you need to. Which as a result will help you grow your business. Whether it be hiring new staff, renting a new office space or purchasing new equipment to help you fulfill your business needs. With invoice factoring, you have the flexibility to access funds and use them in your business instantly.

Invoice Factoring Perth

Pay your suppliers on time

Being able to pay suppliers up front and on time for their work is very important to help grow your business as you can often negotiate better deals for payment upfront, and on top of this, you will gain a great reputation among your suppliers which will help with getting better business deals in the future.

Business Invoice Factoring Perth

Use Invoice factoring to pay your staff

Nothing is more stressful when trying to grow your business than thinking about how to pay your staff wages. Invoice factoring will help you ensure they are paid correctly and on time so that you can continue to run your business. Invoice factoring can also help with expanding your staff as your company’s revenue grows, making the workload less stressful on your current resources.

Invoice Factoring Companies In Perth

Speak to Key Factors about Invoice Factoring

Key Factors can help you set up invoice factoring and answer any questions you may have.  We can also follow up on unpaid invoices on your behalf to allow you the freedom to focus on your business.

Key Factors allows businesses to have access to cash within as little as 4 hours! With no minimum volume or ongoing monthly charges, we can help you bridge the gap of slow payments so you can focus on growing 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. With over 30 years of experience in invoice factoring, your business is in good hands.

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.

Business Finance With FactoringRunning your own business can be challenging and if you don’t have the right tools or enough business finance to help fund operations, the stress can take a hefty toll on your health and wellbeing along with your company success.

One of the main reasons many businesses fail is poor cash flow. This is unfortunate as it is an easy problem to solve if you have the right knowledge and take advantage of different funding options. Here we will provide you with some valuable information on factoring, a flexible business finance alternative.

A great way you can maintain your business finance is to use factoring to get instant cash upfront by financing your accounts receivable.

How does factoring work with Key Factors?

Improve your business cash flow in 3 simple steps:

  1. Invoice your clients and send us a copy.
  2. We transfer up to 80% of the invoice value to your nominated account in as quick as 4 hours.
  3. The remaining 20% is credited to you when your client pays us.

By getting the cash upfront you can eliminate the stress of the waiting for clients to pay in 30, 60 or even 90 days. BCashflow Positive factoring service also provide account management and follow up of your outstanding accounts at no extra cost. This gives you peace of mind allowing you to focus on doing what you do best which is growing your business.

Factoring allows you to pay your staff on time, instead of having to try and get a business loan from a bank which can take weeks or even months.

You can use factoring to pay ATO bills, office costs, rent, supplier costs and any other expenses you may have in your business.  It’s also a good idea to use invoice factoring for those unexpected expenses that pop up from time to time or when your business is experiencing rapid growth and require additional working capital.

If you would like to know more details about how you can use a flexible business finance option like factoring to improve your cash flow, complete our quick contact form or call 1300 884 100 to speak to one of our factoring experts.

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.