Sunday, September 05, 2010
   
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How Factoring Works

How Does Factoring Work?

Any business who sells to other businesses on credit terms is able to factor its accounts.

A factoring facility allows a business to eliminate the gap between the time an invoice is raised and the time payment is received from a customer – thus converting your credit accounts into cash accounts - imagine having COD customers only!!

As a result the cash flow of the business is improved dramatically.

The Factoring Process

Step One
Your business delivers a product to or provides a service for, your customer.
Step Two
An invoice is raised by the business.
Step Three
This invoice is sent to Business Capital Financial Group together with a “proof of delivery” document, such as a delivery docket or a consignment note.
Step Four
Upon receipt of your invoices they are scanned and then posted by Business Capital Financial Group to your customer.

Step Five
The invoices are processed and funds are deposited electronically into your bank account within 24 hours of their receipt. (Up to 90% of invoice value.)
Step Six
Business Capital Financial Group follows up the payment of the account in accordance with your terms of trade.
Step Seven
Your customers then remit payments to Business Capital Financial Group.
Step Eight
The balance of the invoice (less the factoring fees) is then paid to you.

 

Now your business can enjoy increased sales offering credit terms ...

                           and still get paid within 24 hours.

Contact Details

Business Capital Financial Group

Head Office
Norwest Central
308/10 Century Circuit, Baulkham Hills NSW

PO BOX 784
Kellyville NSW 2155

Phone : (02) 8831 7400
Fax     : (02) 9659 9422
Email   : sales@bcfg.net.au

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