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As technology evolve so does the world of finance. Financial Technology, also known as FinTech, relies on software to provide financial services. Factoring, one of the world’s oldest method of finance is also going online with lots of new FinTech factoring companies entering the market.

Businesses looking for ways to raise working capital can find it quite daunting navigating through this new market. By understanding the difference between a traditional factoring company and a FinTech factoring company, you will be able to make a more informed choice.

FinTech factoring company

Factoring Company In PerthFinTech Factoring is the new kid on the block and has also been called ‘peer to peer funding’ or even ‘crowd funding’ in that a business lodges invoices it has raised via an online portal or digital wallet with the FinTech, who then checks the authenticity of the invoices before exposing them to its suite of investors to see if there is an appetite to fund against said invoices. The FinTech does not fund in its own right.

Most often acceptable invoices/debtors pertain to large and well-known companies and each transaction is structured by a composition of collaterals depending on the stability of the business and its debtors. The charges incurred can vary from both invoice to invoice and debtor to debtor, a version of ‘Rate for Risk’. Non-payment of an account will still result in a recourse of the debt back to the business, plus payment of interest and charges to accommodate both the FinTech and the investor[s].

Businesses considering FinTech factoring should be mindful of the start up nature of most FinTech factoring companies and the longevity of these providers. FinTech factoring also rely more on technology and online platforms to provide funding, so there may be no staff or phone support.

Traditional factoring company

At Key Factors we believe in good old fashion service and operate under a traditional factoring model. Although we invest in technology to improve user experience, our offices are staffed with actual people who are always on hand to take your call.

Our staff play a major part in everything that we do. From the initial consultation, right through to the daily management of clients accounts.

We believe in building long-term partnerships by providing flexible and personable financial solutions. Our facility has no minimum volume requirement, no long-term contracts, and no on-going monthly charges.

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.

Debt Factoring allows businesses access funds owed to them before it is paid by the debtor. It’s a way for businesses to access most of the money owed to them in their outstanding invoices and receive the rest when the customer pays.

How does debt factoring work?

Businesses that are in need of quick access to cash can sell their accounts receivables at a discounted rate for a fast injection of cash. Debt factoring allows businesses to continue their day-to-day operations without worrying about limited cashflow.

Invoices are forwarded to the factor like Key Factors who then provides up to 80 per cent on the face value of the invoice within 4 hours to the business to access as necessary. When the invoice is paid in full to the factor, the business receives the remaining 20 per cent less any accrued fees.

Businesses that are eligible for debt factoring must have B2B sales on credit terms, and invoices for the sale of goods or services that have been fully delivered.

Advantages

There are quite a few advantages to using debt factoring for businesses of all sizes.

  • Additional cash flow for growing companies
  • Bridge the gap of slow payments
  • Working capital for startup companies
  • Meet operating expenses
  • Get on top of ATO obligations

It’s a flexible alternative to traditional business loans as it is adjusted based on the business’ sales. Debt factoring can hugely benefit cash flow since businesses can get instant access to a large proportion of the money owed to them instead of waiting for payments to arrive. As a result of this early payment, discounts can also be removed or reduced.

Businesses that use debt factoring has better negotiating powers with suppliers by using the money they receive to take advantage of early payment discounts and bulk-buying opportunities.

One of the main advantages of debt factoring is to provide working capital for growing companies. Access to instant cash allows a growing company to buy more equipment, meet ongoing expenses and hire more staff to service the increase in workload.

Our service allows you to immediately convert sales invoices into cash to help your business operate and grow.
 
Debt Factoring Perth
 
Find out more about our debtor finance here.

Key Factors flexible debt factoring

  • No lock-in or long-term contracts
  • No minimum factoring volume
  • No ongoing monthly charges or annual charges
  • No quarterly audits
  • No property security
  • Fast 48 hours approval

With offices in Perth, Sydney, and Melbourne, our local state managers can provide a tailored cash flow solution to suit your business. Find out how Key Factors’ debt factoring, debtor finance and factoring finance and can benefit your business by contacting us today.

If you think getting funds within 24 hours of factoring your invoices is fast, think again.  Key Factors is looking to introduce real-time payments to allow instant funds transfers.

As part of the New Payments Platform (NPP), instant or ‘real-time’ payments between some Australian bank accounts will be possible 24/7.

Why does transferring funds between different Banks take so long?

Currently, when we transfer factoring funds into your nominated account, it generally hits your account the next business day. That’s because different Banks transfer funds at different times of the day and only during business hours.

How will Real-Time Payments under (NPP) work?

At present, when we transfer factoring proceeds to a customer with the same bank, funds are received almost instantly.

Under the New Payments Platform (NPP), the same can apply even if our customers do not bank with the same bank. That’s because NPP acts like a secured network between participating financial institutions, allowing funds to be transferred between accounts immediately.

Which Banks have signed up?

The big four banks have all signed up along with 9 other financial institutions listed below:

  • ANZ
  • Commonwealth Bank of Australia
  • NAB
  • Westpac
  • RBA
  • ASL
  • Bendigo/Adelaide Bank
  • Citigroup
  • Cuscal
  • HSBC
  • Indue
  • ING Direct
  • Macquarie Bank

What are the advantages of Real-Time Payments and when will it take effect?

The ability to instantly receive funds will ensure your business can meet any unexpected expenses or opportunities that may arise from time to time.

Getting instant cash in your bank account can be as easy as 1 2 3:

  1. Invoice your clients for sale of goods or services and send Key Factors a copy
  2. Key Factors will credit your account with up to 80% of the invoice value.
  3. The remaining 20% is provided once your client pays us, less any accrued fees.

The New Payments Platform (NPP) is set to launch early next year and all participating banks are going through the final stages of testing.  Key Factors will have our finger on the pulse so our customers can reap the benefits of Real-Time payments.

Key Factors Perth

 

How can you qualify?

Businesses benefiting from Key Factors flexible cash flow finance generally have a high level of customers on accounts for the provision of goods or services and have an annual sales turnover ranging from $500,000 to $30 Million.

At Key Factors, we understand small business loans Australia! As a leading cash flow finance company with over 30 years of experience 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.

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 needs and provide you with a quote to suit your requirements today.

Company Name: Flexi Management Solutions Ltd

Industry: Workforce Management

Annual Turnover: $10,000,000.00

Group Facility Limit: $1,000,000.00

Flexi Management Solutions Ltd founded in 1972 is an Australian company listed on the Australian Stock Exchange. Flexi Management Solutions provide workforce management solutions to leading public and private sector organisations. WhenFlexi Management Solutions approached Key Factors they had multiple subsidiaries that were operating at a loss, they had just ceased their factoring facility with another provider, and they were on the verge of being shut down by the ATO due to having tax debts in arrears in excess of $2,000,000.00.  Key Factors’ flexible factoring was just what they needed to get their business back on track.

They needed cash flow assistance in order to sell off some of their non-performing subsidiaries and clear their ATO debts, at the same time they were cautious due to the poor experience they’ve had with their previous provider. They wanted a flexible financial partner who was not going to tie them into a long-term contract, allow them to use the service on a selective basis, and only charge them for what they use. Key Factors was able to offer Flexi Management Solutions just that and at the same time improved their cash flow by releasing the cash tied up in their unpaid invoices.

Key Factors Flexible Factoring

Flexi Management Solutions simply submit invoices to Key Factors as they need cash, and up to 80% on the face value of their invoices were credited into their account in as quick as 24 hours.

Within 6 months of using Key Factors flexible factoring finance, Flexi Management Solutions cleared all their ATO debts, restructured their business and is back to being a front runner in the workforce management sector.

Key Factors flexible factoring has no long-term contracts, no property security, no minimum usage, no management fees, no annual fees, no monthly admin fees and no quarterly audits.

The scenario above is taken from a real client situation. The client’s business name and details are withheld for privacy reasons.

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.

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.

Enjoy A Stress Free EOFY

At Key Factors, we understand the EOFY can be a stressful and busy time for any business. It is all about making sure you’re on top of your financial responsibilities while meeting legal requirements. If cash flow is tight, or your working capital needs a boost, Key Factors invoice factoring facility can help by advancing cash against your receivables.

Factoring Company PerthSmall businesses tend to take on a lot for themselves, from administration, to marketing and bookkeeping, so don’t let the EOFY creep up on you, be aware of time-frames and set reminders.

In order to run a successful business, not only should you be ahead of the EOFY, but think of it as more than just your tax deadline. Start thinking of it as an opportunity to breath a bit of life back into your business and a time to do some strategic thinking. With Key Factors flexible factoring facility the EOFY can be a positive time.

Left it late this year?

We don’t want you to miss anything in the rush so we’ve put together a handy checklist for you to work from.

Simple EOFY checklist for small businesses:

  • Set-up a meeting with your accountant
  • Provide your Business Activity Statement
  • Review your SuperStream requirements
  • Payroll: review any outstanding leave and long-service entitlements of staff
  • Check all employment contracts
  • Annual Income Tax, PAYG Withholding, Fringe Benefit Tax, and Goods and Services Tax reports or returns all need to be lodged
  • Calculate your depreciation expenses by collating your records of asset purchases and capital expenditure
  • Prepare a profit and loss sheet for the year – including revenues and expenses
  • Review outstanding debtors and creditors
  • Check all your client, customer or consumer contracts are all still valid
  • Get in touch with a factoring company if you need to improve your cash flow or are struggling to pay off fees due to slow-paying clients.

Be the best you can be:

  • Take a stock take of your inventor
  • Analyse your performance against the targets you set last year
  • Re-set goals for the following tax year
  • Review your business plan
  • Research changes to your industry, do you also need to develop to align?
  • Decide whether you’re in need of a new marketing strategy
  • Do a cash flow forecast for the following year and assess whether you could benefit from accessing your cash from unpaid invoices by using a factoring facility.

Avoid the rush

It’s time to get yourself prepared and take action in advance. By being ahead of the EOFY, there is a lot to gain, such as taking advantage of tax breaks or upgrading any essential equipment, as well as numerous others.

Why you should submit your taxes early and be prepared:

  • Get your hands on your refunds sooner: if you’re owed tax, it will be paid into your account shortly after submitting your application, therefore, the sooner you apply, the sooner you’ll receive anything owed to you
  • Expecting a bill oppose to a refund? It’s still best to deal with it and work out your finances accordingly, you can also assess how much you owe in advance and then have a saving goal in mind, or use Key Factors factoring serviceto pay it off with your accounts receivables.
  • Avoid any fines – late fees are charged, and you never know what could cause a last minute delay, so make sure yours are done well in advance.

Although Key Factors encourages you to get ahead of the EOFY, remember that factoring companies can help you stay on top of your finances all year round. We understand that expanding your business takes up a lot of time, that’s why, at Key Factors we want to help you focus on growing your company while we take care of your finances. Simply get in touch to see how we can help you.

We understand that every business is different, big or small, public or private, local or national, and we’ve helped all kinds reach their goals with flexible finance solutions. Some were looking for a permanent fixture to help with day-to-day business, others simply needed an extra hand while they went through a growth spurt, while many use us as and when they need us, at no extra charge. At Key Factors, we have numerous options to suit your business, whatever your setup and whatever you want to achieve.

We’re ready when you need us

Key Factors Pty LtdWe know that business growth opportunities or cash-flow problems can arise unexpectedly and businesses often don’t have much time for delayed reactions to these deadlines. There isn’t usually spare time for your stakeholders or many of the numerous company representatives to get involved in the decision process. This also applies to sitting around waiting for application approvals, thus our flexible options. Key Factors can sit in the background, ready for when we are needed, with no long-term contracts, no minimum volume and no ongoing monthly charges. Fast access to cash flow can make a huge difference to the success of your business, and it no longer needs to be complicated.

Try pay-as-you-go

Bank loans are often set to strict repayment plans, with very little flexibility and are not easy to initially achieve, they are also often secured by your corporate and even personal assets. This results in stakeholders and business partners being a little apprehensive with commitment and understandably thorough when it comes to risk assessment and figures. With factoring, you are only accessing money tied up in your accounts receivables, therefore the amount will solely depend on sales. If you would rather have no interest to pay or principal to repay, a pay-as-you-go option could be your solution.

Restrict your restrictions

Don’t be restricted by caps and limits, with factoring, your ability to grow is in your hands, not the hands of your bankers. Factoring is practically an unlimited source – with your cash availability representative of your sales volume.

Flexible finance

Key Factors is a flexible service that can be used for any amount of time on any percentage of your entire business. Plus, factoring can even be used alongside any pre-existing bank loans. This is extremely beneficial when you have numerous members of the company involved in your finances, as there is no long-term loans or detailed bank contracts everyone needs to agree on, just a simple solution with a percentage fee agreed upon in advance.

If you already have a set bank loan that you will be using, or if your loan amount is exhausted, don’t be put off – there is no reason you can’t still make the most of factoring cohesively. They can both work in conjunction with each other, neither causing restrictions. Factoring can give you the availability to grow and pursue new business opportunities.

Working with Key Factors

Keyfactors PerthOne such company that dealt with their cash flow restrictions, while still keeping all their stakeholders content came to us in April 2016. Discover how we helped improve their business and gave them the ability to grow using alternative finance.

Introducing *ABC Drill Pty Ltd – now an American owned business that has been operating in WA and Australia since the early 1960s.

The company background

ABC Drill Pty Ltd was originally set up as a local family business specialising in servicing, building and maintaining drilling rigs for the mining industry. With the massive mining expansion in WA after 2001 they grew considerably and were then taken over by an American based conglomerate late 2011.

ABC Drill Pty Ltd now builds maintains and services specialised drilling equipment to supply the Australian market, and are also looking at expanding and selling some of their rigs and technology to overseas clients of the US parent.

Joining forces

ABC Drill Pty Ltd now has the backing and strength of the US based parent, and their growth to date has been fully funded by the US company. They have no bank lending of any kind and own the majority of their plant and equipment, buildings and real estate. The parent company has of late, pushed for them to become more ‘cash flow’ self sufficient, hence their request for help from Key Factors.

This was a great opportunity for Key Factors to highlight their flexibility and give the company an opportunity to grow, using their cash tied up in their accounts receivables as and when needed.

Finding a cash flow solution

The major banks have all let ABC Drill Pty Ltd business pass, as they all wanted water tight security and guarantees from the US based parent and shareholders for any lending the WA company wanted.

Key Factors were able to structure a facility and security arrangements that suited both the local CFO and US based directors and shareholders. At Key Factors we have the flexibility to work around your business barriers.

A future with Key Factors

Key Factors hopes to be a long term partner for ABC Drill Pty Ltd, and expand their network of high worth and blue chip clients/debtors.

One of the major selling points that the US parent liked, was the ‘pay as you use’ nature of our facility. This is something we offer to all our clients, and can be the ideal compromise. Key Factors sits well as a ‘back stop’ arrangement, which can sit in the background (costing nothing) and be pulled out and used if and when required.

Find out if factoring could work well for your business by getting in touch with our expert team. We are available if and when you need our services and only charging a percentage of what you use.

ABC Drill Pty Ltd – facts and figures in further detail:

The American company has worldwide offices, employs over 3,500 staff worldwide, and has an annual turnover in the $ Billions of dollars. It specialises in the oil and gas industries around the globe.

Proposed limit

$750,000

ABC Drill Pty Ltd current directors

The majority of directors are US based, plus one Australian director.

The company is managed in Australia by the CFO

Shareholding

100% ownership held by “ XYZ US Inc” of the US

General company information

The Perth based company turns over in excess of $50 million in annual sales.

The facility for $750,000 was approved and documented here in our Perth office in April 2016.

In summary:

Whatever size your business and however many stakeholders you need to please, with Key Factors, you have the flexibility and options to choose from, depending on your requirements. With no lock-in or long-term contracts, no minimum volume and no annual charges, why not get in touch to discuss how we could solve your factoring problems?

Working with Key Factors could help your business grow and please your company stakeholders, with fast approval and no hidden fees – find us in Perth, Sydney and Melbourne.

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.

*Disclaimer: The client’s real business name and details are withheld for privacy reasons.

If you are looking for a flexible factoring business in Australia, you might have come to the right place.

Although small business makes up a vital part of the economy, even the most successful Small and Medium Enterprises can struggle to be approved for the loans and get the funding they require to thrive and succeed.

Flexible factoring business

Factoring For Small BusinessWhether you’re an experienced lender or it’s your first time looking into financial help, factoring could be the answer for your business. Half of the battle for a growing business is their ability to keep up with demands without consistent cash flow. Factoring provides exactly that, it allows you to release cash tied up in unpaid invoices. Therefore, you are only accessing money that is owed to you. There is also a high level of flexibility when it comes to factoring. Key Factors as a factoring business doesn’t require a minimum volume, there are no lock-in or long-term contracts and no ongoing monthly or annual charges.

Are you avoiding the lending process?

Is there something putting you off the lending process? If you’re worried about risk-based interest that could take a turn at any time or you’re nervous about linking your property to your business, it’s time to take a look at a factoring business like Key Factors. There are no surprises and no hidden fees, plus you can use us as much or as little as you like! Find out more about how we work here.

We’re focused on what’s best for your business – take a look at this recent case study:

No matter what your current situation is as a business. We work with you to provide the best solution.

*ABC Pty Ltd is a family owned business with over 80 years of experience in the manufacturing industry. Their ability to service a wide range of clients with an array of products has allowed them to maintain a comprehensive customer base for three generations. As the new generation re-shapes the company’s focus, their ability to satisfy a continual stream of work is inhibited by lengthy trading terms which has restricted their increasing customer base.

With an existing over draft from one of the big four banks already accounting for a portion of their lending portfolio. They were looking for an alternative source of funds without having to increase their exposure to the bank, which required additional security over the director’s homes. Key Factors was able to assist in conjunction with the bank and enable the organic growth of their business to continue.

With no lock in contracts or minimum spends, ABC Pty Ltd had the freedom to use Key Factors as the need for additional capital increased. Key Factors has made available new opportunities for growth that didn’t exist under conventional lending agreements. While maintaining a close relationship with Key Factors they were able to satisfy their existing obligations with the bank and more importantly excel in providing the best service to their customers.

Background

Industry: Manufacturing

Annual Turnover: $5,000,000.00

Facility Limit: $200,000.00

In Summary:

Whether you don’t have time to wait for a loan approval, your bank has offered you a loan but it is too low, or you simply have a low credit rating, we have an option to suit you. With fast approval and a strong customer focus, a factoring business like Key Factors’ could be the bank alternative you’re looking for.

At Key Factors we care about your business. Take a look at who we have helped in the past with more case studies and find out if we’ve worked with businesses in your sector.

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.