Most businesses wait to bills or debts have added up and use Debtor Finance, Factoring, or Invoice Discounting as a last resort. Ultimately this is never easy to monitor or maintain as a large amount of cashflow is used to catch up old debt.
In over 50% of businesses, they say the Factoring funder is the cause of the plight of the company. This is often not the case at all. If Invoice Discounting, Debtor Finance, or Factoring is used properly in an effort to grow the business, the products success rate becomes over 90%. Cash Discounts or early payment discounts help offset the costs of the facilty.
Using Cashflow for unpaid invoices being paid in 48 hours instead of waiting 48 days, also means putting extra staff on, creating more marketing and sales. It may also mean, purchasing a piece of machinery with the bulk payment, also creating more business.
This is the most important thing to remember. Invoice Discounting, Debtor Finance, or Factoring effect all businesses profit margin as it is a service cost. How this is absorbed into the business, depends on how the business uses the facility, and which facility it chooses.
Trade Debtor Finance Consultants is made up of experienced consultants in all the debtor finance products. They know costs of each of the facilities and have over 11 lenders to choose from. Each lender has different strengths and to suit different industries.