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FACTORING
PRODUCE CASH FLOW
To maintain an excellent credit history, you first need to stick to a budget so you know exactly where all of your money is going. What’s more, you need to make sure you keep daily note of every single business expenses.
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Factoring Articles
The PPSR and Factoring
Today there are more and more businesses in Australia using factoring now to raise valuable working capital, so this is why it is important to understand the implications of the Personal Property Securities Register (PPSR).
Construction Sub-contractors Using Factoring is in Focus
As part of Australia’s Building the Education Revolution (BER) program, the Construction Forestry Mining and Energy Union (CFMEU) is applying pressure to the Labor Government to pursue an inquiry into the business failure of construction companies who were contracted by Bovis Lend Lease to help build school projects.
Debtor Factoring is Part of Doing Business
Today there are more companies embracing debtor factoring as just part of doing business and so the question seldom surfaces...Is debtor factoring really safe for you? But just in case someone wants to know, debtor factoring is done by exchanging one form of an asset, such as future collectable invoices, into another form of asset, like cash for the invoice at a discounted rate. Debtor factoring provides a company with funds for its cash flow and smooth operation and also protects from future uncertainty.
Subsidiaries of Global Companies Use Invoice Factoring
Factoring is a process for a small to medium-sized enterprise (SME) to use invoices to obtain a line of credit. This has become increasingly popular in Australian as of recent, which has been perpetuated by an increase in the payment days demanded by larger companies; in addition to increasing challenges of obtaining conventional bank credit lines. Clearly, both of these issues have been exacerbated by the global financial situation.
Debt Factoring by Mining Services SME’s to Flourish in 2012
The mining construction industry activity has been forecasted to surge in 2012 off the back of the ongoing mining boom. This is why small to medium-sized enterprises (SME’s) in this space are tooling up for a strong year ahead. The source, The Australian Construction Industry Forum (ACIF), said mining construction activity is going to grow from billion in 2009/10 to around billion in the years 2013 to 2014.
Transport Companies Are Moving to Debtor Factoring
The transport industry which is comprised of small and medium sized enterprise (SME) operators that continue to thrive despite the considerable pressures facing the industry in Australia. The higher fuel prices have been the major challenge. I addition to the struggles felt by Australia’s retail sector which have a downstream value chain impact on transport operators.
Invoice Discounting Referrals Help Increase Sales
Today everyone is being cautious about spending or parting with their cash. For consumers for example, retailers are forecasting a challenging holiday season with expectations for further reductions in sales following on from its first quarter results down 11 per cent.
Factoring Provides Cash Flow to SME’s caught in Disputes
There were more than 6.5 percent of small businesses embroiled in disputes in the last five years; the majority of which were with other companies. The cost involved in a dispute for a small business is significant, mainly because funding a dispute puts pressure on the company’s cash flow. The time required to resolve a dispute becomes expensive for the business owner, often preventing them from business at hand, let alone new business and growth.
Australia Construction Turning Positive
Overall, recent survey results demonstrate that even though construction in Australia continues to be somewhat subdued overall, there is some activity in the sector and therefore the industry is beginning to turn positive. The survey is called The Australian Performance of Construction Index (PCI), and it is showing an increase in October of 4.7 points up to 34.7 points.
Invoice Discounting Fills the Void Left by Mortgage Redraw Limits for Small Business Owners
There are some Australian small business owners who use their properties as collateral security to obtain capital to fund business activities. It seems this is a particularly popular strategy because the values of properties in Australia have increased thus creating “equity” – the difference between the property valuation and the amount of the mortgage.
Debt Factoring: An SME’s Port during the Storm
Sadly, amidst challenging trading conditions, credit experts Dun & Bradstreet have forecasting even tougher times ahead, and cash flow will continue to be the major challenge facing SME’s. The form believes more local SMEs are at risk now than during the worst crisis in the last 70 years. The company recently released research noting that large companies are taking as many as sixty days to pay their invoices.
Why Brokers Should Embrace Factoring
In the coming year brokers in Australia will be increasingly focused on assisting their clients with commercial loans, according to PLAN Australia, which is one of the country’s largest mortgage aggregation groups. Approximately 32 percent of PLAN national members said that they intended to write some form of commercial business for the first time over the next twelve months, according to a recent survey.
Sole Traders Benefit from Invoice Factoring
Why do so many small businesses decide to operate as a sole trader? The reasons are many. For most for them the simplicity and ease of setup are the primary reasons, however, there are other reasons such as:
Trends: Small Businesses Pawn Jewelry to Make Payroll
According to an article from the United States, with the increase in the price of gold, small businesses are now using gold jewelry as collateral for loans. At their local pawn shop to obtain loans to finance their businesses. Popular expensive items include luxury watch brands like Rolex or Cartier.
Invoice Discounting Helps SMEs Maintaining a Wide Range of Customers
Invoice discounting is helping a myriad of small and medium-sized businesses in Australia with their cash flow. It is a financial service that is still in its infancy in Australia, although it has been used for more than 4,000 years in various industries all over other parts of the world. Small businesses often only get paid 30, 60 and sometimes even 90 days after they deliver their goods or services.
Debt Factoring Helps SMEs Compete with Big Companies
It is a known fact globally that bigger multi-national companies command and receive longer payment terms than small to medium-sized enterprises (SMEs). Here’s why: The reasons for this include the fact that there is typically a long chain of approvals in the corporate world, adding time to the process; there is also a high likelihood that some invoices don’t meet specifications, often times due to a missing code, or purchase order number, causing delays; and then there is always the overseas accounts adding to the complexity.
Factoring Benefits Contractors with Tax Debts
Certain companies in the building and construction industry will have increased compliance and reporting obligations in order to mitigate tax avoidance by construction contractors according to the 2011 Budget. Assistant Treasurer Bill Shorten said that some contractors in the industry were either unaware of their tax obligations or intentionally under-reporting their tax.
Sole Traders No Longer Alone: Benefit from Invoice Factoring
A small businesses may decide to operate as a sole trader and there can be a number of reasons. But for most small business owners, the simplicity and ease of setup are the primary drivers. Other reasons might include:
Factoring Trends in Australia
Factoring companies can provide you and your small to medium-sized enterprise (SME) with the working capital required to meet your obligations and to grow your business. Funding new business growth is quite challenging in today’s economic times, but the good news is that small businesses no longer need to be victims. Invoice factoring is also called invoice financing in Australia, and no matter what you decide to call it, the services provided by a factoring company like the Interface Financial Group (IFG) provides many small businesses with their own bailout plan.
Testimonials:
"IFG has become an important asset to our company."
Daniel F. Ortega
Director
Nationwide Drywall
