AFC, Australia’s leading factoring company for the automotive sector, is experiencing strong continuing growth, especially since panel shops have been able to factor their commercial invoices. More and more shops are taking advantage of this to assist their cash flows. The responsibility to chase these commercial debtors (as distinct from insurance companies) is beyond many shops and they are outsourcing this task to AFC. Why wait for the local car dealership, the rent-a car franchise, the council, etc. to pay? If there’s an official purchase order from an acceptable debtor then AFC will factor the invoices.
New panel shops regularly express surprise at the speed at which they can be transacting with AFC after their initial application is received said Rael Ross, a director of AFC. The process can take as little as two hours. A credit check is followed by the preparation of the debtor finance deed. After the executed deed is received from the applicant the new client is entered into the operating platform and transacting can begin.
More information on the AFC website.