The True Cost Of Invoice Factoring – Business Briefcase Podcast #4

Loandesk.com.au

THIS PODCAST FEATURES: In Podcast #3 Part 1 of the Factoring Series – we talked about the different types and overview of the how each facility worked. This podcasts we will delve into: > How each facility is priced - Spot invoice factoring - Debtor Finance, full and partial facilities - Invoice Discounting – won’t go into depth as it’s not as popular > What type of security is taken over your business (only relating to Factoring), used to be called fixed and floating charges. Now switched over to the Personal Property Security Act, which is extremely broad in nature and is already in action through New Zealand and Canada. Lenders register on the Personal Property Securities Register usually what’s called an ALLPAP (all present and after acquired property). Similar to the old fixed and floating charges. Essentially a new register where every security interest from lenders can be searched easily, with a fully online rego process instead of manual. If lenders don’t register they simply don’t have security. > How do they lenders asses risk in this area? Concentration, dilution, advance rates debtor turn. Moving onto a lighter note, recap on what lenders will look at when assessing your application, Do they really care about your financial history? Interested in your customer quality and spread of risk. Podcast #5 is coming up next from the Business Briefcase, we will be talking about Short and long-term property secured business loans. First mortgages, second mortgages and caveats. What’s available now and how you can qualify for alternative loans in this space, why you would use them and what rates should expect to pay in compared to bank loans. Thanks for listening.