Debt Factoring Company in Australia - Fast & Easy Factoring Receivables

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.

Why should you choose Broc Finance?

In a short tenure, Broc Finance has helped Australian businesses, especially the SMEs to secure diverse financing options and facilitate the same via credible lenders. We have a robust network that comprises the top lenders in the country. Our accessibility to varied business loans makes it easy for businesses to get the kind of financing that’s best suited for them.

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.

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.

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Niteesha Nagowah

We had an incredible experience working with Saroj from Broc Finance. He is incredibly knowledgeable, responsive, and guided us through the purchase of our company vehicle with expertise. The attention to detail and commitment to finding the best possible options truly set him apart. Highly recommend his services for anyone navigating the complexities of obtaining a finance. Thank you again for outstanding assistance.

Manpreet Kaur

Our sincere thanks to Saroj ji & his team for their invaluable assistance in securing the loan. We are extremely greatful for his exceptional service & support throughout the process. Highly recommend!

Matthew

Broc Finance were awesome…really responsive and solutions focussed. We especially appreciated having a broker who was an advocate for our interests when engaging with lenders.

Ibrahim Alpay

Saroj and his team is amazing have been using him for business funding for over a year he has found surprising solutions when others couldn’t make it happen very skill full with negotiating high loan amounts that I would never expect at wonderful terms and rates look no further I recommend broc finance for your business lending purposes look no further and don’t think twice much appreciated won’t go to any other broker at all many thanks to his team !!!!!!

vishal srivastava

We have used Broc Finance over last 2 years for various business line of credits and vehicle loan. Broc finance have been very professional in this journey. They have understood our needs as business and catered the solutions as per requirement . They look around in market and get one the best financial solution for the business be at vehicle of line of credits . I would strongly recommend the business for there services

Nasir sabiry

Thank you very much in helping me with financing a car SAS. You have been very professional and responsive every time I needed information. Fully recommend to any looking to finance a car.

Tajinder Kumar

For those seeking a trustworthy and dependable financial broker, I would like to recommend Broc Finance. While their fees may be slightly higher compared to other brokers, I found that their personalized approach made it worth it. Broc Finance took the time to understand my specific needs and goals and tailored their services accordingly. Additionally, their prompt availability to answer any questions or concerns was greatly appreciated. Overall, if you're in search of comprehensive and professional financial advice, Broc Finance is an excellent option to consider.

Ajay Kanumuri

I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.

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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.