Here is why this option is now available to clients.
Most debtor financiers keep their pricing down by offering a fixed minimum annual contract fee.
For some clients, where they have fixed supply agreements with customers or have a solid cashflow forecast, this is a great option.
Yes, you can still take up the fixed minimum anual fee option with AR. After all, it is a good option to have.
BUT, what happens if you are not sure what your turnover will be?
If you commit to a financier with a minimum annual turnover and you don’t reach it, you can be up for some heavy ongoing monthly account fees.
Fees you may not have budgeted for.
So what is the solution?
How about if you could have the benefit of having a facility where there is no minimum annual fee?
You would have the benefit of experiencing the best of both worlds right?
You could have lower debtor finance fees (when compared to a spot factoring facility), with the benefit of paying only on turnover that actually occurs.
If you were considering a spot factoring deal but were scared of the pricing. If you did not want to commit to a minimum annual fee. Now you don’t have to worry.
You can pay as you go.
This is one more change we have made as part of a radical re-think of how we deliver better terms and conditions to our partners.
Debtor Finance product change at a glance:
- Clients can now elect to have no minimum contract fees on their debtor and or trade finance facility.
- This does need to be taken up by the client upon signing up, it is not applicable to existing clients. If you are an existing client and would like to switch over, I am happy to chat about moving you across to this type of facility.
- Who benefits most from this type of facility? Clients who have no idea what their turnover might be for the next 12 months. Clients who don’t want to be on the hook for minimum annual contract fees should they not reach their target turnover.
If you would like to know more about this type of debtor finance or why we are offering it, give me a call on 1300 652 158.