Invoice Finance
Factoring and Invoice Discounting facilities offer a set of financial and professional services allowing clients to survive the ups and downs of cash flow that all businesses face from time to time.
The type and extent of services provided ranges from full service Factoring, which takes over the administration of the client's sales ledger including all debtor management functions, to the sole provision of funds against outstanding invoices provided by an Invoice Discounter.
By making maximum use of one of a company's most significant assets - its unpaid invoices - we are able to give a business the development opportunity it needs. In today's business climate it is more important than ever to be able to grow and compete rather than merely survive.
We have provided Factoring and Discounting services since 1989 and have assisted many New Zealand businesses to grow and prosper over the years. Testament to our success is the large number of long term clients we have.
There are a number of reasons for the strong growth of Invoice Finance including;
-
Management time can be devoted to the core aspects of the client's business and costs can be reduced where we assume responsibility for debtor management and administration.
-
The ability of the client to utilise the cash raised from the factoring/discounting arrangement to obtain early settlement discounts from the client's own suppliers.
-
The ability to collect cash within 24 hours of raising invoices improves cash flow management, which in turn enhances liquidity and growth potential.
-
Increased awareness of invoice finance products.
-
The benefits of an improved credit rating that comes with improved cash flow.
-
Factoring/discounting can be more flexible and with a lower cost than alternative funding arrangements.
Both Factoring & Discounting require the following from their clients;
-
Goods should be sold on normal credit terms.
-
Ideally there will be a spread of debtors so that no one debtor is responsible for a large part of the total outstanding debt.
-
Clients should have an efficient debtors ledger and credit assessment system.
-
Factoring/Discounting is generally not suitable for retailers, contractors receiving stage payments, or business sectors with a disproportionate level of trade disputes.
Factoring/Discounting is most suitable for a business when it;
-
Has rapid sales growth
-
Sells tangible goods or services
-
Is trading profitably, or can demonstrate emerging profitability
-
Regularly exceeds its current overdraft limit
-
Is unable to meet large orders or seasonal peaks
-
Has fully borrowed against fixed assets
-
Has credit terms with trade debtors and has a suitable credit history
Call us today (09 579-4204) for a no obligation assessment of what factoring could do for your business.