1. The best Factor is one you don’t need to use. However it’s there in the background ready to give you quick funds when you unexpectedly need it.

What this buys is peace of mind. Freedom from nagging worries like, “… will I have enough cash to pay the bills due next week if the Insurer doesn’t come through with that payment.” This means you can focus on running your repair business more efficiently (and sleep better).

With this in mind, you need to find a Factor who:
1. costs nothing to join, and
2. costs nothing if you don’t use them, and
3. doesn’t mind if you only do factoring every few months.

That’s what Working Capital Finance is all about. There are no joining or monthly fees.

We want to do a small amount of factoring for a large number of Smash Repairers rather than a lot of factoring for just a few.

You only pay when you use us.

However many Factors have a different view and require minimum monthly volumes or work on fee rebate systems. That is, they charge a high factoring rate upfront as you use them, but then rebate some of it back at month end if you do a lot of business with them. The problem is too often this means you get stuck on their high rate. Jobs don’t get completed all together but are spread out over weeks and months and you keep missing the necessary volume each month.

2. Look around for the best factoring rate. Factoring’s benefit is that it can be quick and easy to set up and access but don’t be fooled, the reality is it is not always the cheapest source of finance.

Working Capital Finance’s rate is the higher of either 1.75% of the invoice value OR $80 per invoice.

You are welcome to compare it to others’ rates. If they were cheaper than us they would lead with their pricing in all their advertising like we do. But they don’t!!

We know what they charge (we watch them pretty closely) and we believe we are more competitive.

3. Fast conversion of your insurance company invoices to cash is essential. The day you decide to factor an invoice you need to know exactly when you will get paid and how much.

The best Factors will accept a faxed invoice from you, confirm payment on the same day and pay you overnight. You only mail them the originals once payment is confirmed.

Working Capital Finance does this but many Factors will only pay you once they have the originals. This can means days lost while Australia Post crawls along delivering your invoices and then the Factor may ring you to say there is a problem with the invoice or they can’t buy it (so after a lost week you are back where you started). Working with faxes or e-mail copies like we do enables all this to be quickly sorted out the same day.

4. The Factor must accept invoices for every Insurer not just some of them.

You may have Preferred Repairer type arrangements with one Insurer and not want to factor their invoices.

However even with these Insurers if you are getting paid by them inside a week there may be times when you need it overnight, not next week. On those occasions you need to be able to still factor the invoice. Some Factors will not accept such invoices. Working Capital Finance will.

Alternatively, an Insurer may be unknown to you and you subsequently discover they have a reputation as a slow payer. You know the type, you mention the 30 day payment requirement in the Industry Code of Conduct to the person from their Call Centre and they say “What’s that?”

A good Factor takes the rough business with the smooth. It doesn’t pick and choose.

Working Capital Finance accepts ALL insurance company invoices but plenty of other Factors do not.

5. You need a Factor who is on your side just like, say, the Motor Traders Association of NSW.

There are plenty of Factors out there that are owned by Bank’s and other such companies but Working Capital Finance is part owned by both the MTA’s of NSW and SA. Enough said, we regard ourselves on the same side of the Smash Repairer.

6. Finally, your Factor must be easy to sign up with.

If you click on this hyperlink Working Capital Finance - Forms and print out and complete our one page Registration Form (Form A) and fax it back it will take you less than 10 minutes. Now it could not be easier than that. Remember it costs you nothing until you start factoring with us but it buys you peace of mind. Why not do it now?

By Kim Jacobs
Working Capital Finance
(p) 02 9968 2328
(f) 02 9968 2564
(e) kjacobs@workfinance.com.au
www.workfinance.com.au