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No responsibility to collect debtors

Receive up to 90% of your accounts receivable.

Funding possible within 24 hours of approval

No bad debts risk

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What Is Debt Factoring?

The term “Factoring receivables” is clear enough. Factoring is a transaction between two entities, where a lender or finance company buys the accounts receivables or debt from another company. Debt factoring is a form of business financing which enables enterprises to control their cash flow and get instant access to funding by leveraging the accounts receivables ledger as security or collateral. They sell and give access to their receivable ledger to a lender, and gain funding against it.

Not all companies or enterprises come with significant ownership of real estate assets, which can be used as security for business loans. It is applicable, especially to SMEs, new businesses, and start-ups. Business establishments like these can use their accounts receivables ledger as assets, turning a liability into an opportunity. They can use it as a security and get immediate financing enough to suffice the operational costs and accelerate business growth.

For more information, reach out to the experts at Broc Finance today! We will connect you with a trusted and vetted lender for factoring.

What you should know about Debt Factoring

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Key Attributes Of Debt Factoring

Factoring receivables financing comes with a unique set of attributes, setting it apart from the conventional forms of financing, such as secured and unsecured business loans. Unlike the traditional loans, this one has a simpler funding process wherein the lender outrightly buy out your account receivables ledger and make upfront discounted payments factoring the risks associated with the ledger. The other features are listed below:

  • You can unlock up to 90% of the value of the receivables ledger within 24 hours of approval.
  • The collection and bad debt risk is passed on to the lender by factoring receivables.
  • Don’t need to put in any additional real estate security.
  • Factoring is an essential alternative to conventional business financing, especially for businesses that have regular outstanding expenses like labour costs, raw material sourcing, etc. Debt factoring presents an opportunity to turn a problem into a financial solution to drive business continuity and growth.
  • It allows businesses to avoid falling into the vortex of late payments to vendors.
  • Factoring makes it easy to get approval for financing even with an average credit history, ATO debt, or short trading history.

It turns the debt or outstanding invoices into a great asset for the enterprise.

Which Businesses Are Suitable For Debt Factoring?

According to an Australian Small Business and Family Enterprise Ombudsman survey, SMEs are the worst sufferers of pending invoices. 100% of the business owners who participated in the survey complained about late payments. More than half of the business owners claimed that 40% of their invoices were pending or paid late. It’s the reason why, many enterprises resort to factoring receivables, so that can fill in the financial gap.

  • Nevertheless, some businesses can benefit from compared to the rest, such as;
  • SMEs are involved in transport and logistics, storage, wholesale trade, and manufacturing.
  • Companies on recruitment and staffing spree.
  • SMEs that are on a growth drive can benefit from factoring. These organizations require a constant flow of cash to maintain business continuity.
  • Private limited companies, partnership firms, joint ventures, and individual traders can benefit from factoring too.

Not sure if you your business is eligible for factoring receivables financing? Contact us today for expert consultation.

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Why should you choose Broc Finance?

Tailor made options

Being a small business owner, many of our clients are not sure of right loan product for their businesses. Our lending specialists understand their needs and recommend tailor made options.

Personal Consultation

Unlike business loan marketplace websites which use AI based algorithms to match your requirements, we provide obligation free personal consultation as every business is different and an AI based algorithm may not provide them the optimum solution.

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Competitive Pricing

We endeavour to achieve the optimum business loan solution for our clients at the most competitive pricing possible.

Clear communication

We understand the essence of time so don’t believe in wasting our customers time by giving false hopes. Transparent and clear communication is in our DNA.

Real results with real people.

137+ customer reviews

5.0

Amit JKPIANN

Amit JKPIANN

Fantastic experience working with Saroj and the team at Broc Finance. The entire process was smooth, professional, and well organised from start to finish. They were very clear from the beginning about the process, requirements, and expected timeline, and everything progressed exactly as explained. Communication was excellent throughout, which made the whole experience straightforward and stress-free. Highly recommend Saroj and the Broc Finance team. Thank you for the great service!
Richard Anthony

Richard Anthony

I had a fantastic experience dealing with Broc Finance. The whole process was professional, straightforward and incredibly easy from start to finish. The communication was excellent, everything was explained clearly, and I always felt like they were genuinely working to get the best possible outcome for me rather than simply pushing a finance product. What impressed me most was how responsive and efficient they were. Nothing was ever too much trouble, questions were answered quickly, and they made what can normally be a stressful process feel completely seamless. I would highly recommend Broc Finance to anyone looking for finance. Professional, knowledgeable, honest and great to deal with. I’ll definitely be using them again. ⭐⭐⭐⭐⭐
Nigel Underdown

Nigel Underdown

The team at Broc finance were great and very helpful with our loan. Constant communication and feedback. Very happy with their service. Will definitely use them again.
R G

R G

We received exceptional service from Sumedha and Saroj at Broc Finance. From the initial contact to securing a business overdraft facility, the whole process was prompt and seamless. Sumedha kept us updated every step of the way and understood time pressures of being in the Medical industry and kept the entire communication electronic and straightforward. We highly recommend Broc Finance for any of your future financial needs. Once again big thank you to Sumedha and Saroj for all your help, guidance and support.
Melanie Grohovaz

Melanie Grohovaz

Broc Finance was able to understand our needs and process the finance quickly and with very minimal effort from our end. The finance company itself had a few requests which Broc referred on quickly and with proper instructions and alternatives. It was so easy and to be honest, the service was better than any top tier bank I have dealt with. Thank you.
Tiles Galleria

Tiles Galleria

Finance Broker Review I had a great experience working with my Broc finance broke. Saroj and his team are professional, knowledgeable, responsive, and made the entire finance process simple and stress-free. They explained everything clearly, found a suitable finance solution, and kept me updated throughout the process. I really appreciate their hard work and excellent customer service. I would highly recommend them to anyone looking for a reliable and trustworthy finance broker.
Shahdain Asa

Shahdain Asa

Sumedha was very helpful throughout the whole process. She kept me updated, explained everything clearly and worked hard to find a suitable option. I really appreciate her support, patience and professional service. Thanks Sumedha for your assistance.
Supratick Choudhury

Supratick Choudhury

It was a difficult loan request. But the diligent, sensitive and tailored approach of Saroj from Broc Finance made all the difference. I could finally get my loan request approved through him after series of applications and rejections from many other loan providers..he hand held the whole process end to end..I will look forward to manage my future debt structure working closely with Broc Finance..Good work guys 😊
Anurag Kishore

Anurag Kishore

Saroj and his team are highly recommended. They are the best in the market. Your search for a fantastic finance broker ends here. Thank me later 😊
Chi Morris

Chi Morris

Dear Sas, I want to express my heartfelt gratitude for your efficiency and the exceptional support that you have provided in helping me meet my business needs. It was always easy to deal with you and you were always available to answers every question. I was also quite impressed by your professionalism and efficiency which were quite exceptional. Thanks for going above and beyond to deliver an outstanding service. I look forward to working with you again in the future.

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Frequently asked questions

A traditional bank loan demands the business owner to have a notable credit history and a real estate asset as collateral for the loan. In debt factoring, the lender considers the recent sales of the enterprise, and the pending invoices become the collateral. Unlike a traditional bank loan, you can get the funds within 24 hours of loan approval.

You can choose which invoices you want to hand over to the lender, offering debt factoring to you. We offer that flexibility to our clients.

The cost varies from one business to another. You can consult with our personnel to get a clear picture of the fees you will have to pay against the debt factoring service.

Once you factor in your receivables, the lender will have control over it, chasing and collecting the unpaid invoices. So, yes, your clients will know about the factoring receivables.

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