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hi this is david hector with the interface financial group in sydney australia today i want to talk about the debt factoring agreement as more small businesses in australia turn to debtor finance it is important that small business owners understand the agreements that they are getting their companies and themselves into so what exactly is in the debt factoring agreement that entrepreneurs will need to be aware of pricing is obvious so this article addresses the other key areas the first item in the debt factoring agreement is the term of the facility this ranges from there being no fixed term with spot factoring to a 24 month commitment in standard factory in the latter case this will mean that the small business is obligated to use debt factoring for two years or pay a termination penalty for ending the relationship early quite obviously small business owners would be wise to use spot factoring unless they know they will need the facility continuously during the contractual period th
