"Top 10 List" of reasons you should consider debtor finance
Unlimited capital. The only financing source that grows with your sales, that we know of, is factoring. Financing your accounts receivables allows you to constantly have the ability to meet increasing demand, therefore, as sales increase, more money becomes immediately available to you.
No debt incurred. Factoring is not a loan, therefore you are not incurring any debt. This can make a very attractive balance sheet, which makes it easier to obtain other financing or to ultimately sell the company.
Elimination of bad debt. The risk of bad debt is fully assumed by any non-recourse factor, thus eliminating this expense from your income statement.
No loss of business equity. Ownership percentages are unchanged with a factoring arrangement (unlike most venture capital arrangements).
Offer credit terms to your customers. Factoring your accounts receivables allows your business to be more competitive by offering credit terms to potential and current customers without the risk of a negative cash flow impact.
Leverage off your customers' credit. A company doesn't eed to be credit worthy to factor its invoices. In fact, it's not necessary to be in business for three years, or to be profitable, or to meet any other conventional lender qualifications in order to factor accounts receivables. Simply have a credit-worthy customer, and you can qualify for a factoring arrangement.
Establish good credit for your business. Paying your company's bills in a timely manner is no challenge with mproved cash flow. Factoring accounts receivables makes cash immediately available to keep cash flow steady.
Invoice processing service. You can greatly reduce your cost of processing invoices. Our factoring services handle most of the work. Mailing invoices (addressing envelopes, stuffing them, paying for postage), posting invoices to a computer system, depositing checks, entering payments on the computer and producing regular reports can be delegated to the factor.
Professional collections. A good factoring company can handle collections more professionally and more productively than you can internally. This could translate into further cost savings for your business.
Factoring is fast and easy. Generally, no tax returns, personal financial statements, business plan, projections, etc. are necessary to process a factoring application. Usually, within about one week of receipt of signed contracts, your factoring account is established. Thereafter, accepted invoices are converted to cash within 24 hours. Bureaucracy prohibits banks from processing that fast.
Complete our online form for a quick quotation, click here
If you have an immediate cash flow funding requirement please feel free to call our office on 1300 652 158, enquire online or email ARCF@ARCFfinance.com.au. We are here to help you.
