HBOS Australia is continuing its onslaught into the business banking market with the launch of Invoice Discounting through its Business Division operating under the BankWest Business brand.
Invoice Discounting has previously been available through the HBOS Australia asset finance division operating as Capital Finance.
Announcing the change, National Manager Invoice Discounting Peter Fitzpatrick said distributing the product through BankWest would allow HBOS Australia to offer the product to a bigger customer base and would give more Australian businesses the chance to benefit from a market-leading product.
"Turnover in the receivables finance market was $12.1 billion in the September quarter, 25 per cent higher than the September quarter in 2005, according to the latest Institute of Factors and Discounters (IFD) report," he said.
"Businesses are looking for different forms of finance as they try to reduce their exposure to rising interest rates. We offer Invoice Discounting to businesses who want to reduce payment terms and fund business growth from their receivables by accessing a line of credit linked to the value of their trade debts.
"BankWest will provide advances of up to 85% of outstanding invoices, with no requirement to have real estate as security. This is one of the highest advance rates in the market."
"At BankWest we consider flexibility the key and for the right clients we will fund against debtor concentrations well in excess of 50% and debts in excess of 90 days old," he said.
Mr. Fitzpatrick said Invoice Discounting proved popular with customers who needed more flexible lending solutions than traditional bricks and mortar security.
"The IFD research findings are indicative of the strong demand for working capital from businesses in the $3m to $300m turnover category," he said.
"We don't want businesses restrained by the inflexibility of traditional funding means. Our service helps our clients free up their capital, take the strain off their cash flow and spend more time chasing new business instead of invoices.
"The demand is from businesses that are positioning for growth or seeking to be more proactive in their cash management. Invoice Discounting allows these businesses to reduce business borrowings, lift borrowing power and increase purchasing power."
HBOS is a leader in invoice discounting and factoring in the UK with a business almost as large as the Australian market combined.
"We use our local knowledge to tailor our product to the Australian market but we also draw on HBOS' overseas experience to bring in some fresh and innovative features."
Mr. Fitzpatrick said HBOS Australia is determined to drive change in the Australian banking industry and leverage its strength as a multi-brand, multi- channel organisation to become a significant financial services provider.
ENDS
Media Contact:
Natalie Causley
Media Relations Manager, HBOS Australia
Tel: (02) 8299 8261 or 0400 241 663
natalie.causley@hbosa.com.au
About BankWest Business
BankWest Business provides a full range of core and specialist business banking products and services to all business market segments from small business to large corporates. From market leading transaction and investment accounts through to flexible business loans and sophisticated Financial Market and International Trade products, we are an organisation committed to making a meaningful difference in the financial services marketplace with our simple and straightforward products. Our energetic approach and attitude aims to reject the status quo and present a significant challenge to the conventions and the competition.
BankWest Business has a presence in capital cities, rural areas and regional locations throughout Australia. We focus on key markets including Property Finance, Small Business, Commercial, Rural and Regional and Corporate.
We also offer a flexible range of products and competitive lending guidelines across specialist industries such as Aged Care, Childcare, Hotels/Accommodation, Franchise and Pharmacy. We recognise the value of the going concern of a business, along with the value of its people and brand, not just its fixed assets or balance sheet.
Our business banking managers have been selected for their industry knowledge and experience and take the time to get to know their customers' business to find the best products and services to meet their needs.
BankWest has been around for more than 100 years and is now part of the HBOS Australia group with assets of over $39 billion. Backed by our parent company HBOS plc, one of the world's largest financial services groups, we are providing a fresh customer experience and challenging the Australian market. BankWest is the fastest growing business bank in Australia*, and because we are growing, we will try harder to help grow your business.
*Measured by market share growth, number of new managers hired and number of new Business Banking Centres opened.
