Debtor Finance
Having “Cash Flow” problems to maintain and grow your business?
Do you always have trade debtor payments outstanding?
Debtor Finance is one of the fastest growing forms of Business Finance in the world. Every business needs to grow – after all, you are in business to build your business. All too often a business can find itself unable to reach its full potential when vital cash flow is tied up in outstanding invoices.
Why Debtor Finance?
- Turn your trade debtor invoices into cash today
- No mortgage security required
- No loan repayments
- A funding facility that matches your business growth – automatically!
- Never get caught overtrading again
- Forget having to reduce your profit by offering settlement discounts on your trade invoices eg. 5% discount for 14 day settlement
- Receive supplier discounts as a “cash” buyer
- Access 24/7 – 365 days a year to your own secure business Internal Portal
Debtor Finance provides:
- A flexible source of working capital to SMEs
- The ability to advance up to 80% of trade debts with the balance available on payment by the debtor
- An alternative to traditional overdraft that does not require bricks and mortar security
- A facility that grows as the business grows, using today’s sales to fund tomorrow’s growth
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How does it work?
Imagine you are a furniture importer who wholesales to other businesses in Australia.
You buy a chair for $20 and sell it for $50, BUT you have to wait for 45 to 60 days before you can buy another chair. No problem, you can receive up to $40 against the invoice within 24 hours (with the balance on full payment by the debtor), meaning that you can immediately go and buy two chairs for your $40 and sell them for $100...
Now we can give you $80 against the second invoice and you can buy four chairs and so on. The mathematics speaks for itself!
This is a very simple example, but debtor finance is just that - simple.
It's like a line of credit based on what you are owed. There are options available to you today that suit all kinds of businesses!
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