Searching for fee finance service in Australia? Contact Client Finance for professional fee finance for accounting, accountants and legal firms.
Often Professional Fee Funding and debtor financing are confused. In fact, there are many differences, so keep reading to understand more about Professional Fee Funding. Simply, it is often described as FeePay, a short-term cash flow funding product that is aimed at professional service firms and their clients. It gives clients the option of choosing between direct debit, credit card, or BPAY as well as single lumpsum payments or multiple instalments. They can easily split the professional fees into various smaller chinks.
Normally, any client will pay a fixed interest charge and some kind of fee to establish the Professional Fee Funding. This can all be agreed and discussed upfront, which allows a real partnership to be created. There are some real benefits for professionals. They will often see their debtor management costs reduced and the amount of outstanding invoices will drop down. It also gives their clients another option to choose from. It shows they are flexible and understanding of clients’ needs by offering Professional Fee Funding.
Ultimately, it enables more clients to access their work, which will only improve their reputation and increase word of mouth recommendations. Overall, it gives any professional a real advantage over competition and a reason for people to choose their services over those of others. There are also a number of benefits for clients as well.
Firstly, and most obviously, it will help their cash flow, by being able to opt to pay these fees over a longer period of time. It essentially frees up more of this cash to be invested elsewhere, perhaps to help grow the business. It is also often seen to help clients with their cash flow discipline, and it also gives an extra line of credit for their business. So that’s a little bit about Professional Fee Funding, but if you are still wondering how it is different from debtor financing, we can explain using three clear reasons:
1. There are no discounts
With debtor financing the accounts receivable ledger is finances by the accountant at their own cost. Whereas Professional Fee Funding allows the accountant to receive payments in full for their invoices every time.
2. There is choice
There is much more flexibility with Professional Fee Funding. For example, clients can pay their invoice in various levels of instalments if they want to. That way clients can choose an option that suits them and allows them to be in control and be open and transparent with their accountant. On the other hand, for those people who take advantage of this, they may often pay late, which is difficult.
3. Accountants can choose as well
Accountants are free to decide themselves which clients they offer the option of Professional Fee Funding. That is great, as no one solution suits every client. In stark contrast, debtor financing leaves the accounts receivable ledger totally in the hands of the debtor, which gives accountants and their clients absolutely no control.
Client Finance helps Fee Payment For Accountants and law firms. Contact our friendly team today, and we’ll work with your Accountant and Law Firm or Insurance provider to arrange the funding for your invoices and set up a payment plan that works for your business.