Firm Buy & Hold IMOI work within the Accounting industry & we've...

Firm Buy & Hold IMO

I work within the Accounting industry & we've often seen 'factoring' companies come in offering to buy our debtors at 80% and we've held off because we're losing 20% off the bat with interest being charged to the our firm depending on payment date of invoice and other variables. The client would then get pursued by a debt collector which is not exactly the most comforting process, most clients would look for another accounting firm when their accountant is causing such a inconvenience to their lives. Even with all this the factoring industry has survived and from my understanding, been extremely profitable. Filthy modern loan sharks.

Quickfee benefits both the accounting firm & the client as the accounting firm gets 100% paid and the client is only charged ~10% over 10-12months?

Also, with the mandatory Single Touch Reporting coming into effect 1 July 2019 by the ATO which requires an any business that is employing to have an online accounting software to report payroll each paycycle (i.e. Xero - personal favorite & i'd like to hear an accountant that thinks otherwise) this means that full Xero integration couldn't have been timed better for most small businesses that have been forced to make the move.

If factoring has succeeded with so many negatives/on-costs that only benefit the factoring company. This idea is simply a 'no-brainer' for success

The firms will flood in.

IMHO.