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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.

Managing business growth can come with a lot of pressure. While a sudden growth spurt of your business is always a wonderful thing, it’s important to be prepared – especially when your business is experiencing unexpected growth. You’ll need to reshuffle a lot of things around to succeed, from people’s roles to potentially all of your processes.

Read on to find out the three areas you’ll need to assess in order to successfully ride the growing wave of your business.

Processes And Systems

Cashflow Finance PerthDuring a time of rapid growth, your existing systems and processes simply don’t cut the mustard. Chances are they just weren’t designed to cope with high levels of activity. You need to come up with a new order that will help you give your customers the best experience possible.

When coming up with your new processes and systems, it’s a good idea to have an ethos that aims to create value for the business in the future. These processes and systems should reflect a future vision. Try to set aside time to figure out how to continue to create value for the business moving forward. Ask yourself what a sustainable and flourishing business should look like in the next six months to a year, then build the necessary conditions to make it happen.

Cash Flow

When your business grows, it’s essential you fully understand the movements and ebbs of your cash flow. The larger the business, the more complex the cash flow is, so you need to examine everything thoroughly. Once you completely comprehend the movements of your money, you can strategise about how to help your newly expanded business run smoothly

Some factors to consider when reviewing your cash flow include target pricing, and understanding the true costs of each sale. You might notice some services are costing you more money than you thought, or choose to focus your efforts on the most profitable products your business offers. It’s always worth keeping an inventory of your strongest performing products and generally set up a culture of observing your key performance indicators with the mind to replicate their success moving forward.

At this stage, it will be enormously beneficial for your business to partner up with financial experts. Not only can they help with a lot of complicated processes like weighing up future investments and cash flow, but they’ve seen and done it all before.

Key Factors provides growing businesses with constant cash flow by releasing the cash tied up in their unpaid invoices.  Clients can get up to 80% on the value of their invoices, in as quick as 24 hour by using a Debtor Finance facility.

Staff

You absolutely need to consider your staff during periods of rapid growth in your business. How can you ensure your team are able to handle big changes in their workflow and fulfil the changing needs of your company? It all boils down to a combination of your recruitment processes and the culture in your workplace. Stay true to the core cultural ethos of your business, but be flexible – give you and your business room to grow as well.

It’s also important to consider team dynamics. As a business grows, the start-up family vibe will inevitably change. A good way to avoid discord is to include your current staff in the hiring process to ensure everyone gets along and will be able to get the support they need to do a great job.

Want to learn more about how Key Factors can help your growing business?  Call 1300 884 100 now!

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.

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.

Cashflow finance allows you to convert sales invoices into cash without needing to wait for up to 90 days for your clients to pay. Whether you’re wanting to grow your business or just have a more regular easily accessible cashflow to cover overheads, cashflow finance is the answer.

How does cashflow finance work?

Key Factors Pty Ltd

How much does cashflow finance cost?

With Key Factors’cash flow finance, we only charge a flat daily fee of 0.1% per day, which is only payable if you use it. As an example, on a $1,000 invoice which is paid 30 days after it is factored, the total cost incurred would be $30 (3%). There are no monthly admin fees, annual fees or early exit penalties.

What are the advantages?

Some clients can take up to 90 days to pay, which can put a strain on your business cashflow. Cashflow finance enables you to get immediate access to cash tied up in your unpaid invoices, so you can get on top of ATO obligations, meet employee wages, and most importantly grow your business.

You never know when your business is going to have a financial emergency, requiring urgent access to cash. Flexible cashflow finance provides you with you peace-of-mind by converting your sales into cash in as quick as 4 hours. Additional cashflow can be beneficial to your business, allowing it to grow, avoid interruptions and challenges and cover the gap of slow payments from customers.

Cashflow Finance For Small Business

The main advantages of financing from Key Factors are:

  • No minimum monthly usage requirement and you will only be charged for what you use.
  • No lock-in contracts and no early exit penalties.
  • No quarterly audits and no property security.

Running a business can be very time consuming, and you often don’t have time to chase clients for payments. With Key Factors’ cashflow finance we will also help with the follow up of accounts, saving you time and stress.

How do you qualify?

Companies benefiting from Key Factors flexible cashflow finance service 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.

 

Apply online

A significant benefit of Key Factors’ cashflow finance facility is the easy online approval process, meaning you can apply for finance 24-hours-a-day and 7-days-a-week.

To find out more about cashflow finance and how it can improve your business cashflow, contact Key Factors today. We can discuss a tailored solution to suit your business needs and arrange approval in as quick as 48 hours.

 

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.

Regardless of the size or type of business, having problems with cash flow is a major concern. Even if a business is currently profitable or showing strong projected growth, if expenses are not covered, the growth may be stunted long-term.

Want to improve your working capital? Here’s how to increase cash flow in your business in eight different ways.

Business Cash Flow1. Come up with a cash goal and supplement it with a cash flow projection

Proactivity is the name of the game, so begin with setting a clear cash goal. It is vital that you are aware of the funds required to take your business to where you desire, or to place it in the competitive position it needs to be. Do this by carrying out a cost analysis and establish your break-even point well in advance. Every month, complete a profit and loss statement, a cash flow statement and a balance sheet – these three documents will give you an in-depth view of the health of your business finances, allowing you to prepare for the inevitable highs and lows of cash flow for the coming months.

2. Add a ‘PAY NOW’ button to your emails and invoices

A quick tip of how to improve cash flow quickly is to make it easier for your customers to pay you immediately. A ‘Pay Now’ button can be added to invoices and emails, meaning customers are one click away from payment. This simple button that links to your online payment platform is very convenient, and features in many accounting software programs, and can even be created yourself.

3. Use Key Factors factoring financing to bridge the gap of slow payments

Factor Financing is a flexible way to quickly boost your cash flow by allowing you to turn your sales invoices into cash – fast. Forget waiting 30 to 90 days for your clients to pay and recruit the help of Key Factors. With Key Factors factor financing you can get up to 80% of the invoice value in as quick as 4 hours. The remaining 20% less any accrued charges are made available once your client pays us.

4. Become more efficient

With a variety of tech tools available online, it’s never been easier to streamline your business dealings to become more efficient. E-commerce sites, accounting software and smart-phone enabled credit card readers are just a few tools that can save your business both time and money. Use technology to your advantage – for example, conduct international meetings over Skype conference calls instead of paying high travel costs.

5. Find ways to reduce costs

When thinking about how to increase cash flow, if you can’t increase profit, why not find ways to reduce costs? This can go a long way especially for ongoing monthly bills like phone, internet and electricity. Are you certain you’re getting the best deal? Call and negotiate with your providers and you’ll find that often you can receive a significant discount simply by asking, as a reward for consolidating costs or being a loyal customer.

6. Condense all outstanding invoices into one statement

In the case of a customer having a number of multiple invoices open, encourage fast payment by consolidating these documents into one. Having one clear invoice that specifies the total amount owing (as well as a breakdown that details the dates, goods and services purchased) makes it easier for your customer to confirm exactly how much is due, all whilst avoiding having to fill their inbox with numerous overdue statements.

7. Review your prices

When was the last time you reviewed your pricing model? It’s important to fine-tune prices every so often to ensure you’re not selling your goods/services for too little or too much. Cash flow can be boosted by increasing prices, however if you do, make sure the increase is justified by considering what you can add to your products to raise their value in the consumers eyes. Sometimes, the perceived value of products can be raised simply by a price hike.

8. Chase up outstanding payments in a timely manner

In the case of outstanding payments, don’t delay – follow up your clients with polite but firm reminders, remembering to always remain professional whilst doing so.

As apart of our factor financing service, Key Factors will follow up on outstanding accounts on your behalf. We will also send your customers statements summarising the total amount due as a friendly reminder. Our factor financing service not only boosts your business cash flow but can save you time and resources, allowing you to focus on what you do best which is growing your business.
Want to know more about factor financing and how to increase cash flow in 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.

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.

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.