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The Future of Factoring in Australia Part 2

By Patrick Crivelli on 25-May-2016 08:00:00

“What the hell is reverse factoring?

                                    - Skippr Client

The Future of Factoring in Australia

By Patrick Crivelli on 05-May-2016 14:55:24

“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 volume of factoring 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. 

How to invoice someone - factoring vs invoice discounting

By Alistair Lamond on 23-Feb-2016 07:30:00

There are two types of people in the world. Those who make your life easier — and those who make it harder.

-Dan Pink

A thriving business' biggest challenge is sourcing a reliable line of working capital finance. This can be the difference between making life easier or harder as finance traditionally requires personal security and is bound by restrictive covenants and conditions.  Whether it be covering monthly overheads, funding acquisitions, purchasing inventory or tendering for larger projects, it is imperative this working capital finance solution empowers the business owner to be ambitious and doesn't act as a hindrance. The funding tool needs to give you control, limit liability and of course be cost effective. The following sources are traditionally relied upon in the stated order:  

  • Extending payments terms to suppliers (also known as dynamic discounting)
  • Credit Card
  • Overdrafts
  • Director loans
  • Equity funding or
  • Invoice finance