You have your cash flow engine purring but now you want to optimise its power. What does optimising really mean? Well let’s break it down. Optimising by definition is making “the best of” or “most effective use of”, so to reword this metaphor - how do we most effectively manage flows of cash through your business to optimise its performance?
“The good part, William, is that no matter whether our clients make money or lose money, Duke & Duke get the commissions”
Randolf Duke, Trading Places
Factoring has experienced somewhat of a renaissance in the last decade. Since 2006 annual factoring volume has increased from A$3.4 billion to A$5.3 billion. Growth in factoring volume in Australia was driven to a large extent by three of the major banks scaling back their invoice discounting divisions during the 2008-2010 period, which provided factoring companies with a once in a lifetime opportunity. In our view the traditional factoring model has benefitted from being in the right place at the right time.
There are 2.1 million small to medium sized businesses (SMEs) in Australia which generate over a trillion dollars in output and employ 70% of the Australian workforce. A pivotal part of any economy, SMEs are a key source of innovation and development with almost 100% of innovative business spending nearly $6bn each year on research and development. One key issue that inhibits an SME is finance. A recent update of the SME Growth Index, found that 62% of business saw 'access to credit' as a key barrier to growth with SMEs now preferring unsecured lending as they are more reticent to provide personal security.