Introduced in Australia around 30 years ago, factoring has always suffered a bad reputation because of a long-standing perception that factoring is a last resort for businesses that aren’t able to secure bank lending because of likely collapse. The tide on factoring is quickly changing however as more business owners are looking outside the box for better solutions to common business problems.
Factoring is no longer reserved for companies in need of bail-out. It’s now a go-to option for savvy business owners looking to enjoy more freedom to grow their business, with access to more liquidity and without the limitations of poor cash flow.
At present, 3,000 businesses in Australia currently use factoring. We’ve seen this trend emerge very sharply in real estate. Many real estate agency owners feel the long wait for commission payment hinders the performance of their agency. Are you one of them?
In an article called Factoring in a quick spike in cash flow, published in The Age, Lee Clarke, Chairman of the Debtor and Invoice Finance Association comments “Factoring is useful for any company which has a working capital gap – that is, if invoices aren’t being paid quickly enough to cover costs, which is often a problem for a growing company.”
Read the full article here: Full article
Could your real estate agency use some cash flow relief? Get in touch now and find out how we can help.