QA Business Finance

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Q&A

How I’ve helped and thoughts from the desk

What sort of businesses do you work with?

Our clients are typically businesses in growth mode, or those requiring short-term cash funds to meet creditor and staff payments.

Our average client has 3-15 staff and a turnover around the $1.5m mark, however many are sole operators and a number are far larger. Our finance solutions cater for the needs of most businesses from most industries.

Fifo Capital has helped companies who do: computer training, contract cleaning, engineering, excavation, haulage, import and distribution, labour hire, landscape gardening, manufacturing, packaging, painting, paving, printing, transport, wholesale, and many more.

What level of funding will we receive?

Anything from $5,000 to $250,000, depending on your needs and the kind of short-term business finance you opt for.

– For invoice finance, you typically receive up to 90% of the invoice value up front, in cash, and the balance less our fees on payment by the debtor.
– For Fifo Loans, the amount is determined by how much you can afford to repay within the timeframe
– Stock finance and Flexi-Pay customer payment finance are handled on a case-by-case basis.

How fast can we receive the funds?

For a new client, approximately 24 hours. For existing customers usually a couple of hours. Please refer to our full terms and conditions for funding transfer timing.

How much will it cost?

Our fees are based on a sliding scale that is disclosed to you upfront, so there is no misunderstanding or surprises. Fees range from 3.0% per 4 weeks of the invoice value or loan amount and increase depending on our risk assessment and how long it takes to collect the payment from the debtor and the financial health of your business. Additional fees (if any) are documented and disclosed transparently in our letter of offer to you.

Do you fund on consumer receivables?

No, we only deal with business-to-business finance.

Do you run credit checks?

On occasion we may need to run a credit check when approving your registration. However, we will always obtain your Privacy Act consent before completing personal credit checks.

How I’ve helped and thoughts from the desk

Can you help with my business cash flow?

Fifo Capital provides short-term business loans to almost any type of business:-

– Limited liability companies, partnerships, sole traders and family trusts. For debtor finance (debt factoring), the criteria we typically consider are:
– Is your debtor a bona fide trading business? (We do not provide funding based on consumer debt.)
– How credit worthy is your debtor?
– Has the invoiced goods or services already been provided?
– Is the invoice late or disputed? (We do not collect overdue debt.)

Will it impact my banking facilities / lending?

No. Fifo Capital works alongside many banks – with most of the major banks referring customers to us to provide assistance when they’re unable to extend their current lending facilities.

If we use your services, will our customers think that our financial position is unsatisfactory?

No. Debtor or Invoice Finance has become so well established that it would not be uncommon if your customers already deal with other clients using similar finance arrangements. They may even use it themselves. It is simply an additional, highly flexible finance option that many businesses now incorporate in their business model.

What if my customer does not pay an invoice?

This happens rarely, as we do our own credit searches. However, should such a situation arise, you will be required to repurchase the unpaid invoice from us and then either collect it from the customer yourself, or hand it to a debt collection agency to collect.

Will you collect overdue accounts for me?

No, we are not a debt collection agency.