Debtor Finance (1 Viewer)

[johnkerr]

Hey guys,

I'm a pretty recent graduate and while I'm looking for work I'm helping out a friend with his panel beating business. Startup costs are covered but we're looking at pretty steep running costs and when you're billing primarily insurance companies the turnover can be really slow. So we're looking into this debtor finance company/package.

We'll be talking with our accountant first but I was hoping to arm myself with some knowledge first. ANyone had good/bad experience with this kind of finance?

 

[johnkerr]

Hey guys,

I'm a pretty recent graduate and while I'm looking for work I'm helping out a friend with his panel beating business. Startup costs are covered but we're looking at pretty steep running costs and when you're billing primarily insurance companies the turnover can be really slow. So we're looking into this debtor finance company/package.

We'll be talking with our accountant first but I was hoping to arm myself with some knowledge first. ANyone had good/bad experience with this kind of finance?

Just to clarify the busines will be based in Melbourne, and he has experience running this kind of shop, just not as an owner.

 

[fortune_cookie]

lol, you are trying to get free professional business advice of a forum that is frequented by mainly high school students. Do you honestly think any replies you get will be credible?

 

[soloooooo]

You have graduated university. Use the skills you gained from that to help you find the correct people who can offer professional advise for you on this matter.

Hint: Start with the Yellow Pages of the phonebook.

 

[seremify007]

This has to be one of the most serious questions I have ever seen on BoS... ever.

Hey guys,

I'm a pretty recent graduate and while I'm looking for work I'm helping out a friend with his panel beating business. Startup costs are covered but we're looking at pretty steep running costs and when you're billing primarily insurance companies the turnover can be really slow. So we're looking into this debtor finance company/package.

We'll be talking with our accountant first but I was hoping to arm myself with some knowledge first. ANyone had good/bad experience with this kind of finance?

The question is at what stage of the business is your friend's shop in? Has it been up and running for a while with a strong history of collection? What kind of security can you offer against the debts if they don't get collected? Are you willing to take a hit on the value of your debtors to get liquidity? Are you looking at this from a short term bandaid solution or as a longer term strategy? You need to think a lot of these factors through and the implications because obviously it'll impact margins, and the cost of accessing these features (and whether or not you offer recourse) is something else to consider (e.g. if you sell a debt, it doesn't get paid, and then they come after you).

I'm not an expert in this field but some of my clients are involved in this business.

 

[seremify007]

lol, you are trying to get free professional business advice of a forum that is frequented by mainly high school students. Do you honestly think any replies you get will be credible?

You never know. Beats asking on Gumtree.

 

[davemcgoldrick]

Just to let you know Johnkerr, I've actually been looking at using this company you mentioned debtor finance for a situation which wasn't so dissimilar to yours and I wanted to know if they were any good?

Not looking for any free business advice just want to know what you thoughts were about going down this type of finance route?

Cheers

 

[Axel8100]

The use of debtor financing has grown strongly,as it has become more widely recognised as a valuable financing tool, supplementing or replacing traditional overdrafts or fixed-limit business loans.
Some providers have minimum terms,exit fees,notice periods,audit requirements etc.That need to be fully assessed prior to entering into any agreement.

 

[davemcgoldrick]

I've decided to go with these guys Jonkerr as my debtor finance company.

To be honest there's so much information out there it's pretty confusing at times. I agree though debt factoring isn’t for everyone.

Debt factoring / debtor finance is just another way of getting a short term loan to keep your cash flow coming in and in my opinion should be used as the exception rather than the norm.

Some of the advice I got from Oxford Funding was that if you are mainly dealing with insurance companies, and worried about them paying on time it will be far more cost efficient to make a phone call to them yourself to ensure payment is on track.

One would assume that if they have given you authorisation to carry out the work as an insurance job then it must be safe to assume that they are going to pay you.

It also depends if you're obliged to accept ‘their payment terms’ as opposed to the insurance company accepting yours? If so, what are they (so you can manage your cash flow better).

Do they have some sort of electronic invoice uploading facility so you can keep track of the invoice?

There's alot of food for thought.

 

[mtj7228]

I've decided to go with these guys Jonkerr as my debtor finance company.

To be honest there's so much information out there it's pretty confusing at times. I agree though debt factoring isn’t for everyone.

Debt factoring / debtor finance is just another way of getting a short term loan to keep your cash flow coming in and in my opinion should be used as the exception rather than the norm.

Some of the advice I got from Oxford Funding was that if you are mainly dealing with insurance companies, and worried about them paying on time it will be far more cost efficient to make a phone call to them yourself to ensure payment is on track.

One would assume that if they have given you authorisation to carry out the work as an insurance job then it must be safe to assume that they are going to pay you.

It also depends if you're obliged to accept ‘their payment terms’ as opposed to the insurance company accepting yours? If so, what are they (so you can manage your cash flow better).

Do they have some sort of electronic invoice uploading facility so you can keep track of the invoice?

There's alot of food for thought.

Hi davemcgoldrick and JohnKerr,

We were struggling with the same issues in our business and tbh was pretty hesitant to get into debtor funding as I didn't want it be something we were relying heavily on each month. As it turns out, I have stated talking to Oxford Funding about their <a href="http://www.oxfordfunding.com.au/How-Cash-Flow-Funding-Works.html">cash flow solutions</a> and I was very happy.

They explained that in the short term it will help us get on top of our cash flow issues. We will still need to change our processes slightly and review our payment terms and how we work with insurers
BUT were also going to use this process to help us grow in size.

Cheers,

 

[Newbie]

wtf is this sht? you think everyone is fkn retarded not to see through this as some weak sht ad for this oxford financing bs? get the fk out