Cashflow is essential to ensure the smooth functioning of any operations of a business. Traditionally, there has been a reliance on an increased bank overdraft to finance business. However, there are alternative types of finance that will allow a business to automatically increase the amount of finance available as its sales increase.
Factoring or Invoice Discounting are two options for small to medium business to improve their cashflow. Both of these financial arrangements are primarily secured against the unpaid invoices of a business.
Factoring is the purchase by the Factor and the sale by a business of book debts on a continuing basis, usually for immediate cash. The accounting functions are then provided by the Factor who manages the sales ledger and collection of accounts under the terms agreed with the business. The Factor may assume the risk for accounts within agreed limits (non-recourse) or this risk may be retained by the seller (recourse).
Invoice Discounting is the purchase by the Discounter and the sale by a business of book debts on a continuing basis (occasionally selective) for immediate cash. The sales accounting functions are retained by the business. The debtor is unaware of the involvement of a Discounter.
Trace is Australia’s leading specialist recruitment agency in the niche area of debtor finance, an affiliate member of the Debtor & Invoice Finance Association (DIFA) and we are committed to working closely with companies in this growing industry.
Trace recruit for the following within this area:
- Business Development Managers
- Account Managers
- Sales Managers
- Credit & Funding Officers
- Operational Staff
To access Trace Personnel’s host of skilled Invoice Discounting/Factoring personnel call us today.
NSW – 02 9281 5466
QLD – 07 3391 6912
VIC – 1300 955 503
