Professional fee funding is a very effective option for those professional firms that would prefer to focus their efforts on adding value to clients, rather than waste time and use those same resources to chase overdue debtors.
WHAT IS PROFESSIONAL FEE FUNDING?
Professional fee funding is an extra payment option for the clients of professional service businesses. This option is provided to the client by a professional fee funding finance lender such as www.clientfinance.com.au
As part of the service, the professional fee funding lender will pay you your firm’s invoice in full within a few business days, and then manage the repayment directly with your client. Monthly direct debit payments are the preferred payment method by most lenders.
As win-win to both your firm’s and your client’s cash flow you can offer your clients this payment option by engaging a professional fee funding lender.
Professional fees funding provides your firm and your clients with the following benefits:
Benefits to your firm:
* Your invoices paid in full, and on time
* No cost to your firm
* Improved cash flow and outstandings
* We manage all repayments and collections
* Your firm can focus on winning and maintaining business
Benefits to your clients:
* Monthly instalments providing better cash flow
* Fees are generally tax deductible
* Increased services from your firm, knowing that their account with you is always paid and up-to-date.
When partnering with a Professional fee funding company, your firm will normally receive the full amount of the client’s invoice paid on time and the lender will typically want recourse from your business in order to guarantee your client repays the loan.
WHO USES PROFESSIONAL FEE FUNDING?
Professional Fee funding from trusted companies such as Client Finance, is typically offered to Accountants, Law Firms and to Insurance Brokers to fund their clients’ professional fees and annual insurance premiums.
HOW IT WORKS.
One of the great benefits of working with a professional fee funder is that once your customer has been a proved for approved for funding, you’ll receive the full value of your invoice deposited into your firm’s account within 48 hours.
The funder then sets up a manageable repayment plan so that the client can repay their fees without interrupting their cash flow. Monthly repayments continue until the funding has been repaid in full, and most cases, the associated fees will be tax-deductible for your clients.
Another benefit for the professional firm is that repayments and collections will be managed by the professional fee funding company. This saves your staff from time-consuming and tedious administration work and allows you to focus on developing stronger relationships with your clients.
Clients benefit too, as the varied fee payment options and longer repayment terms assist them in managing their business’s cash flow. As a firm, you can then continue to offer value-added services, knowing that the payment of your invoices can be easily managed with funding from companies such as Client Finance.
In the event that your client does default on their repayment arrangement with your fee funding company, the lender will first seek to recover the outstanding loan from the borrower. If this is unsuccessful then your business will be asked to repay the outstanding loan balance.
With the hard work of fee payments managed for your firm, you can then continue to focus on winning new business and increasing the amount of repeat business from your existing clients.
Overall, both you and your customers will improve your cash flow, giving you the ability to focus on growing your respective businesses.
NEXT STEPS
In the past, these types of products were complicated and difficult for professional firms to set up. Now firms like Client Finance have streamlined the process, making the setup of an account and request for quotes simple and easy. Their staff typically include several ex-professional firm employees who have a thorough understanding of your firm’s client issues and how to deal with them.
There is a range of funding options for the repayment of your professional fees. If your firm could benefit from having your overdue accounts paid, contact your professional fee lender today.
