Australia's leading provider of factoring cashflow solutions to assist you by releasing the capital tied up in your unpaid receivables. Specialists in all aspects of factoring - invoice factoring, invoice discounting, current asset and accounts receivables funding.

What is Factoring?

By definition, Factoring is the assignment or sale of invoices for completed products or services to a third party at a discount to the face value. The concept of factoring is centuries old, however in the current business environment, this form of financing still offers one of the most innovative and flexible forms of financing available to businesses.

In the marketplace, factoring in its various forms, is also known as:

* Current asset financing * Invoice discounting * Cashflow financing

* Debtor financing * Debtor lending

Whatever the name, the concept is the same, although each factoring company varies in the level of services provided.

Factoring is known as the “credit card of business”, because the principle operates in much the same way as Visa or MasterCard operates for retailers. When a retailer sells a product or service to a consumer, who pays with a credit card, the credit card company purchases the debt from the retailer at a discount (fee), and the consumer makes the payment to the card company.

In the business world, when a company sells products or services to another business on credit terms, timing of the payment is under the control of the customer. The selling company cannot predict when the invoice will be paid. Growth of business is constrained because cash flow is affected by slow paying debtors who stretch the payments to the limits, effectively using the business as its unofficial banker.

Many businesses rely on an overdraft facility to provide cashflow, however, overdrafts are an inflexible form of financing. Since factoring is based on the volume of invoices generated, flexibility is guaranteed to respond to sudden growth and increases in orders.

What is Factoring?

home what is factoring how factoring works benefits of factoring who are bcfg

bcfg is different more information your faq's affiliates contact us privacy policy

Sydney - 308/10 Century Circuit BAULKHAM HILLS NSW 2153 Ph: 02 8831 7400

Melbourne - 554 Church Street RICHMOND VIC 3121 Ph: 03 9425 9601