Call us 1300 294 887

Debtor Finance

If you are struggling with cash flow and tired of waiting for your customers to pay, Debtor Finance may be the solution your business is looking for.

What exactly is Debtor Finance?

Simply put, a Debtor Finance facility will help you improve your cash flow by providing an immediate advance of cash against your outstanding invoices. Depending on which financier you choose this can be in as little as 24 hours.

When you raise an invoice, up to 80% of the value of the invoice is immediately transferred into your account. Once your customer pays, the remaining 20% is paid to you less the financiers fee.

How does it work?

A Debtor Finance facility is easily integrated into your business, helping you achieve reliable and stable cash flow. The process is simple and works as follows;

  • Deliver your product/service to your customer.
  • Issue an invoice to your customer and a copy to the financier.
  • Up to 80% of the invoice is advanced to you.
  • Once the customer pays, the remaining 20% is paid to you less the financiers fee.

What are the benefits?

As the saying goes- revenue is vanity, profit is sanity but cash is the reality! And that’s why Debtor Finance can be a critical finance tool for your business;

  • It’s fast, with funds received within 24 hours once a facility is established
  • Real Estate security generally isn’t required
  • Take larger contracts thanks to reliable cash flow
  • Your invoices are essentially converted to COD without having to offer your customer a discount

Who can benefit?

Debtor Finance is suited to almost any business that sells to other businesses on credit terms. Most industries are eligible including, transport, manufacturing, wholesale, labour hire and construction. Debtor Finance can be the answer if your business finds itself in any of these situations;

  • Start up businesses
  • Companies experiencing rapid growth
  • Inability to invest in new equipment due to cash flow
  • Businesses that do not meet the banks lending criteria
  • Supplier discounts out of reach because of poor cash flow