In these turbulent economic times companies utilise factoring for many different reasons and since there are no restrictions on how the cash must be spent, businesses have many options.
If your business is short on working capital, factoring receivables enables you to meet payroll, cover the high costs of labour, fuel, equipment, overheads, expansion, and other expenses. Factoring can be very beneficial particularly if other loans or lines of credit are not an option, by giving you access to capital that is not considered a liability on the balance sheet. Also, your company’s credit rating is less of a concern to us as we are more concerned with the financial strength of your customers and their ability to pay.
When you use factoring, you do not have to dilute your ownership to raise capital. It is a great alternative in lieu of raising capital from family, friends or outside investors.
Companies not concerned with meeting operating costs use the capital obtained through factoring to finance new growth, purchase equipment, increase advertising or sales, pay off high-interest debt, and invest in research and development.
With our factoring service, Cashfactor will purchase your total current receivables ledger paying you up to 85% of the value less factoring fees. The balance is then made available to you when we get paid.
We can offer a full debtor management service where we send invoices out on your behalf and manage the receipt process, or for approved clients with good credit systems in place we will simply provide you with funds up to 80% of the value of the debtors and the balance when we receive payment from your customers.
Factoring helps your business grow by providing funds to a level relative to your accounts receivable not the level the bank has limited you too. If you have an opportunity to increase sales but have a fixed overdraft let us look at releasing the capital to allow you to take the opportunity.
Cashfactor can assist with businesses in all industries where your clients are businesses and you offer credit terms. We purchase debtors ledgers from $30,000 to $300,000 per month
Our Factoring Service is ideally suited to Businesses that:
- Have a total monthly credit sales of $40,000 or more.
- Sell to other businesses.
- Have a good spread of customers domestically.
- Need ongoing assistance with Cash flow.
- Have long term growth prospects.
- Have exhausted primary finance avenues.
