- Factoring is a method by which you can use your existing invoices that have been issued to clients but are as yet unpaid, as a way to raise working capital.
- In other words you are using your invoices as security for a loan.
- While most banks are very conservative with this type of finance, I.e. -they will lend only between 70%-80% of the invoice value, and also only consider invoice that are less than 90 day current - Trade Finance Providers has access to finance that will allow your business to borrow up to 90% of your invoice value while considering invoices that are up to 120 days current.
- Trade Finance Providers can also lend against invoices that are generated from your Overseas Customers.
- Factoring can be a valued financing tool for a company especially during tight economic cycles when it may take longer to collect outstanding invoices.
- If your invoice book is from $250,000 to $25 Million AUS dollars, we can assist with arranging a line of finance using these receivables as security.
Typical Case Study:
Trade Finance was approached by an international clothing company suppling sportswear to Australian, European and American Clients. Their local Australian Bank was unable to provide a one stop local solution to lend against receivables in three countries. TFP was able to arrange and managed a solution for them that involved providing the working capital in three different currencies whilst being managed from Australia.
TFP retains relationship with other lenders that can assist you in the following areas if need :
- Hire Purchase of Cars , trucks, machinery,Computers
- Regular Leases for any asset plus novated leases
- Sale and leaseback or cars or equipment
- Financing of medical equipment and retail office or medical fitouts
