FINANCE
Working Capital Specialists
Debt Factoring & Confidential Debtor Finance finance advantages
In addition to the obvious advantage of accelerated cash flow from Debt Factoring, there are several other advantages to Debt Factoring or Confidential Debtor Finance.
Customer relations and cash flow can be improved with the use of Debt Factoring or Confidential Debtor Finance. With Debt Factoring the responsibility for administering and collection of your sales ledger rests with the Debt Factoring or Confidential Debtor Finance companies, therefore a company no longer has to pressure its customers for payment on overdue accounts.
When customers are aware that a Debt Factoring or Factoring is involved, customers may even pay their bills more promptly improving your cash flow. Since the Debt Factoring or Confidential Debtor Finance companies may also be handling accounts for several other of their suppliers, customers will be careful not to jeopardise their credit rating, as non-payment to one supplier may immediately damage their rating with others. Debt Factoring or Confidential Debtor Finance may even save a company money. Many firms are not able to duplicate their services offered by a Debt Factoring or Confidential Debtor Finance company on their own for the same cost.
Credit investigations
Collection of past due accounts
Record keeping, and all related accounts receivable costs may be significantly higher if a firm must expand its own credit department or use an outside collection agency
Freed of credit and collection problems, a company can concentrate its efforts on increasing profitability
A company using a factor can often obtain more credit information on new customers more quickly
Factors may be able to increase a company's sales volume by advising it of other potentially desirable customers
Debt Factoring or Confidential Debtor Finance can also provide a company with other services such as letters of credit and import inventory financing. Some Debt Factoring or Confidential Debtor Finance companies even use a factor for a division or subsidiary, rather than setting up a separate credit department. Finally, Debt Factoring and Confidential Debtor Finance companies can be utilised to avoid major credit errors when building a market for a new product line.
With Confidential Debtor Finance companies you handle the collection of the ledger, confidentially. Nobody is aware that you are using the service. You can still avail yourself of the the services outlined above if you like with Confidential Debtor Finance.
No Obligation Quote
View Sample Quote
