FAQs

We have compiled a few of the questions that we are commonly asked and accompanied them with our answers.

 
The sum my customers owe is normally around $10,000.00. Is that too small for you to help?

Whatever your turnover, it's not too small. If it remains at that level it's fine with us. If you are looking to increase your turnover we'd like to be a part of that too.


How quickly can we set up a facility?

A facility can easily be in place within a week.

We have done it in less than a day before!

Please complete our application and let's get the ball rolling.


Is there a fixed term?

No, none of our facilities come with a fixed term. We do like some notice if you no longer need our services so that we can help with a smooth transition, but once any amounts owed are repaid you are free to do as you please and we will simply wish you all the best.


What will my customers think and what will their experience be like?

We let your customers know that we will be providing you with our services and it is really just business as usual!

Many of your customers will have dealt with us before and they will be familiar with us. Often your customers will prefer dealing with us. We can respond more quickly to requests than some of our clients because we are geared towards providing invoice copies, account reconciliations and the like.

We act simply as an extension of your business and our aim is to make your customers as happy as we possibly can, for them to pay their account and to continue to be your valued customer.


How can you possibly be cheaper than the big banks?

We don't have the heavy infrastructure and overheads that the banks must have.

We charge based on the specific client's assets that we fund against and the actual services that we provide.

We find that often the banks provide overdraft facilities and business loans at an interest rate that far exceeds their home mortgage lending rates. The banks small business borrowers do seem to be subsidising other borrowers.


Why do my customers need to know that you provide us with funding?

Essentially we provide you funding by purchasing your invoices from you. You assign them to us. We let your customers know that they are to pay us as it protects all parties, by maximising the security available in your assets and accounts receivable.

With your customers knowing that they are to pay us we spread the risk associated with repayment of the funds that we have advanced you. This allows us to reduce our fees in accordance with the reduction of our risk.

We are legally obliged to inform your customers of our relationship if we want to take full advantage of the situation for both you and us.


Can I manage my own debtors?

Yes you can, but we ask why would you when you can have them professionally looked after?

We provide you the ability to manage your debtors on our website, where you can record your contact and send SMS/text messages, emails and generate letters to send to your customers.

By you using our system to manage your debtors we too can see what is happening and once again it reduces our risk and so our fees.


How can using CFF assist in growing my business?

If you take a simple case of buying $50 of stock and selling it on credit for $100 and waiting for up to 60 days to be paid and then apply to that what the use of our services can do to change that:

You bring the invoice to us rather than wait for payment from your customer and we provide you $80 (with the balance less our fees once the customer has paid) right away.

Say you use $50 to make another sale of $100 and keep the $30 for now.

Once again you send the invoice to us and we provide you $80 right away.

Now you can take that $80 plus $20 of the $30 you kept above and use $100 to generate a sale of $200 which you can in turn invoice and send to us for us to provide you $160 right away.

Let's stop there for now:

You have now made sales of $400 ($100 + $100 +$200) and received from us $320 ($80+ $80 + $160)

When your customer pays us $400 at the end of next month we release to you the residual $80 less our fee. For simplicity we have kept the fees away from the above transactions.

If our fee were 4.00% then we would release to you $64.

To recap we have released to you $384 and you have made sales of $400 which is 4 times greater than you otherwise would have if you had waited for payment directly from your customer. If you had simply waited you would have made sales of $100.

Although to make sales of $400 you have paid $16 to us it is most likely that you would have made a greater profit than if you had settled for $100 of sales.


If you have a new question or would like to further clarification please contact us.