What is Invoice Factoring?
Invoice factoring also is a form of invoice financing. In invoice factoring a business gives control of a part or their entire accounts receivables ledger to the lender, wherein the responsibility to collect the debt is passed on to them. Businesses commonly use it to replenish the cash reserves that are suffering from depletion due to too many pending invoices. You can receive an advance of up to 90% in funds against the receivable ledger.
Broc Finance helps you by facilitating invoice factoring, connecting you with a credible lender. We enable you to secure a line of credit against the accounts receivable, by connecting you with credible finance companies.
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Salient Features of Invoice Factoring
Invoice factoring carries the following traits that make it easy for businesses to secure funding.
What Businesses can benefit from Invoice Factoring?
Invoice factoring is suitable for SMEs, which are seeking growth or already scaling their development but need urgent funding to stay on the growth track. The following types of businesses can reap the benefits of sourcing invoice factoring.
- Limited companies
- Single traders
- Joint ventures
If we have to point out industries that mostly opt for invoice factoring, then those will be:
- Transport and Distribution
- Staffing/Labour Hire
Most SMEs do not have the infrastructure support to chase the pending invoice collections. A significant percentage of accounts receivable can create a financial deficit, thus disrupting the regular business and long-term growth. These hurdles can either stunt the growth or make it sluggish, which every business owner wants to avoid.
That’s where an invoice factoring comes to their rescue. With the outstanding invoice collections being taken care of, the business owner can focus on the core processes of the organization. It enhances performance and productivity.
Broc Finance offers you complete support in facilitating invoice factoring for you from reliable and credible financial players in Australia.
Difference between Invoice Discounting & Invoice Factoring
Borrowers often confuse invoice factoring with invoice discounting. Although both fall under invoice financing, they are slightly different. Let’s compare both to clear your confusion.
How Broc Finance Can Help You?
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. The following approach makes us stand out from our competitors:
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.
- 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.
- Clear Communication: We keep our clients well informed about the stepwise progress of their loan application through clear communication in a timely manner.
- Competitive Pricing: We endeavour to achieve the optimum business loan solution for our clients at the most competitive pricing possible.
Saroj was fantastic he was very assuring and was on the mark with every aspect of the application which made my experience stress free. I would definitely recommend my friends to Saroj. As my experience was smooth and quick.