Why Debtor Finance, Invoice Discounting, or Factoring is the only facility left that doesn’t require security and grows when a business grows. Ask TDFC (Trade Debtor Finance Consultants) what is debtor finance today.
Bank loans and overdrafts remain tight during the World credit crisis, and many Businesses are undergoing a cash flow squeeze, caused by the late payment of invoices. According to statistics, retailing services in Australia rely on imports and but a sudden fall in the value of the Australian dollar has affected the importing and small businesses.
Growing unemployment means that conditions in small and large industries have also been heavily impacted. The falling property market has added concern for small business owners as they struggle to refinance mortgages over their homes to raise business loans.
As businesses get squeezed their payments terms slip out past 60 days. Cashflow stops and people get put off for lack of work. It is a continuous cycle.
A positive note: is that we have been here before. What goes down comes back up in time. If a business is strong enough to break out the other side of this recession, than it has a head start on the others that start up in the good times.
Trade Debtor Finance Consultants is a consultancy firm that strives to put the client first. Debtor Finance, Factoring, Invoice Discounting are just words to many Australian businesses. TDFC has 11 lenders in Debtor Finance and helps businesses fit the facility to suit their needs.