21 Aug Stripping Back Invoice Factoring & Invoice Discounting – Business Briefcase Podcast #3

Listen to our interview with Leigh Dunsford and Simon Creighton from Loandesk.


This is quite a large topic and we will be covering this over two episodes.

> Stripping back to the basics, what is invoice factoring?

> How old is it (4,000 year old Mesopotamia Culture, around the time of the pyramids), what are the moving parts essentially, client, customer, financier, invoice, purchase order, payment.

Three types of facilities that typically exist in Australia

1. Spot invoice factoring

2. Debtor Finance – both partial and all of turn over

3. Invoice Discounting

> Typical types of situations that you would use factoring? How much money can you access typical size facilities.

> Why it’s a good option over traditional forms of finance? No property, grows with the business etc.

> How do you know if you qualify? What do you need to have, what industries find it hard to get factoring in place?

> What do lenders really want to see? Do they really care about your financial history? Interested in your customer quality and spread of risk.

> What does it mean for your business letting in a factor? Do they take over your accounts receivable etc Extra administration if you don’t keep on top of the paperwork.

Next podcast coming up – Part 2 of invoice factoring

What is the true costs of these facilities and how do lenders really think etc. we’ll discuss the nuts and bolts of what lenders call concentration, dilution, advance rates, discuss fraud, how lenders recover from defaulting clients and all the good stuff that you can’t learn from flashy marketing that lenders use. Listen to it here….

About Leigh Dunsford

I am a small business finance & lending columnist at Loandesk, teaching entrepreneurs what loan options are available to them in Australia, explaining the differences between each loan type & how to position themselves for the best chance of getting approved for their perfect loan. My thoughts have been published on Startupsmart, CEO Magazine, Smartcompany & more...

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