BCashflow Positive / Blog

Pros And Cons Of Factoring Finance

Feb 01 2018

Are you suffering from cash flow problems? Many successful businesses still face periods when their outgoings and income aren’t quite in sync. Over time, the imbalance usually sorts itself out, but on a week-by-week, month-by-month basis, a late invoice, unexpected bill or a need to buy additional materials can see your bank balance plummet.

If you’re worried about meeting day-to-day expenses such as wages, material purchases and vehicle overheads, factoring finance could be a solution. Providing you with an advance on invoices owed, factoring finance provides a rapid cash injection that can tide you over until your cash flow is on a more secure footing.

The advantages of factoring finance

For many businesses, factoring finance is ideal as a short-term borrowing measure. The process doesn’t require a complicated application process and isn’t dependent on standard indicators of business worth such as asset value. You keep control of which invoices you wish to factor and your relationship with your customers remains unaffected.

Quick to organise, your money can often be paid into your bank account within 24 hours – an excellent idea if you’ve got urgent expenses to meet which really can’t wait. The length of time you can borrow for varies from a few days to a few months. The shorter the borrowing period, the less interest you pay.

Factoring finance gives you flexibility – you can choose which invoices and clients you want to draw funds from. Another benefit is that the process has no effect on your customers – they pay in the same way and the only difference is that they pay us for your invoices rather than you.

If you are a business that tends to have a number of outstanding invoices at any one time, factoring finance could work really well for you.

Are there any problems with factoring finance?

If you haven’t used factoring before, it is wise to do your research to determine whether factoring finance is right for you.  There may be hidden costs and terms depending on which company you partner with.

How much does factoring finance cost?

BCashflow Positive is transparent about our fees so there are no surprises.  We charge 1.8% for the first 30 days and 0.06% daily thereafter for up to 90 days. To find out how much funding you can get and how much it is going to cost, give our pricing calculator a go now.

Who should you turn to for factoring finance?

BCashflow Positive has more than two decades of experience in providing clients with easy and fast access to the cash they need. We make the lending decisions, so there are no middlemen involved – you work directly with us.

Our aim is always to make business lending as accessible, straight-forward and fast as possible, offering transparent, cost-effective lending options to many different types of company. From mining to manufacturing, recruitment, services industries, hospitality concerns and more, if you need business cash quickly, factoring finance from BCashflow Positive could be what you’re looking for.

Call 1300 937 292 to speak to a factoring finance expert today.


What Our Clients Say

"We used BCashflow Positive when our bankers didn't want to know us, as we operate in an industry that was going to be affected by the introduction of the carbon tax.Traditional lenders were unable to deal with the uncertainty and risks.
BCashflow Positive understood the risk and assisted us with our cash flow, which was great"

Financial Controller, Solar Manufacturing Company, WA

"Getting instant funds from our invoices is crucial to our business success. It means we can pay wages on time and grow our business. The staff are also great to deal with."

Owner, Recruitment, NSW

"We engaged BCashflow Positive to get on top of our ATO obligations. Constant cash flow allows us to meet our operating expenses and grow our business."

Accountant, Earthmoving, QLD

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