Among the great number of
challenges facing companies today is not having sufficient capital to keep the
daily running of the business, such as paying salaries on time, getting more
stock, purchasing new equipment etc, etc. If cash flow is impacting your
company there is a solution and it's called Invoice Finance. There are a number
of Invoice Finance products such as Single Invoice Factoring, Full Service
Factoring, Partnership Factoring, Invoice Discounting and Confidential
Factoring. To ascertain which Invoice Finance product is best suited to your
business, speak to one of our finance consultants at TDFC.
Invoice Finance – What is
it?
Invoice Finance was coined
by lending institutions in the Factoring\Invoice Discounting market; this is
when banks and lending institutions offer businesses with a short term loan
based upon the total of their outstanding invoices therefore enhancing their
working capital by increasing their cash flow. Simply put, it's like a short term
bridging loan however for companies instead of houses, usually with
approximately 30, 60 or 90 day terms, where you can obtain up to 80% on face
value of your outstanding invoices.
Let's say your business has outstanding
invoices totalling $100,000; instead of waiting 30, 60 or 90 days to get paid, you
can have access to up to 80% of the total amount owed, which in this case would
be $80,000 normally within 24 to 48 hours of establishing the Invoice Finance facility.
Once the client has actually paid the outstanding invoice then the Invoice
Finance facility pays you the balance.
It is very simple to setup the
Invoice Finance facility, the cash is usually available within 48 hours and
there are no lock-in long term contracts and in most cases this can be done at
no direct cost to your company depending on which service you decide to use but
rates range between 2-4% per Invoice plus interest till paid.
At TDFC our mission
statement is to make individuals acquainted with the loan providers and the
products available. TDFC provides business owners choices and even more
importantly we inform you about all the truths that lenders frequently forget
to pass on. TDFC supports its clients for the life of the Invoice Finance facility.
To find out more about the
range of products available to your business call TDFC and speak to one of our
finance consultants on 1300 008 332 or visit our website at tradedebtorfinance.com.au.
