All you need to know about Professional Fee Funding
Posted by Client Finance on April 14th, 2019
Today, there exists a number of companies providing Professional Fee Funding (PFF) services to companies. This is a favorable option for companies and sole traders that deals with a very large client base, they will be able to get a steady cash flow and will not have to spend much time or resources to chase debtors.
What is Professional Fee Funding?
Professional Fee Payment (PFP) is an additional payment option for professional service companies or sole traders ' clients. This option is supplied by a Professional Fee Finance lender to the client. The Professional Fee Finance (PFF) lender will pay you your invoice in full within a few working days and then directly with your client.
The preferred method of payment for lenders is the monthly direct debit payment. You can offer your clients this payment option by hiring a Professional Fee Funding lender, but you still receive payment in full and in time. This system offers some real benefits to your clients:
You can use this refund option for up to 12 months, which is a more budget-friendly option. They will not have debt collection agencies chasing them for payment, making it a purchase that is much less stressful. You can access more services, as this extended repayment option increases the affordability of your services. You can deduct the interest at tax time.
In partnership with a Professional Fee Funding company, you or your company receive the invoice paid in full on time and the client pays it directly in the agreed installments. The lender will typically want your business to use to guarantee that your client pays the loan.
Who are these services for?
If you offer a professional service to your clients, are an accountant, a lawyer or a consultant who works as an individual or in a company, Professional Fee Finance can be your cash flow solution.
Benefits of Professional Fee Finance services
Instead of waiting for clients to pay you over extended terms of invoice, you get your payment from the PFF company immediately. The client shall set up a loan with your client to pay the full amount of your invoice. The lender will then receive monthly payments from your client. These payments make an interest rate factor.
You can not only increase your client base with Professional Fee Payment, but now you can access the cash flow you need to continue to expand. Since you don't expect to be paid, you can invest in new marketing strategies, expand your offerings and employ more staff to meet any increased demand.
By offering payment options to client, your chances of improving relationships and then word of mouth advertising are increased. When you constantly chase a client for payment, it's hard to build a good relationship with them, offer them future discounts or even earn a second time your business.
There are many ways in which a Professional Fee Funding company can help you in dealing with you debtors and your general cash flow. By using services like those offered by Clientfinance.com.au you will not spend a lot of time and energy chasing debtors.Also See: Professional Fee, Fee Funding, Cash Flow, Fee Finance, Professional, Payment, Fee
Federal Funding Programs
Each year billions of dollars are distributed to the general public through government, federal and private funding programs in the form of grants, low interest and no- interest loans. Click to learn more about these programs!