What types of businesses can use Debtor Finance?
Businesses such as Wholesalers, Manufactures, Employment Agencies, Transport Companies, Cleaning Companies. Almost any business where the goods have been delivered and/or the services provided.
What is the difference between Debtor Finance and Factoring Finance?
They are the same. Debtor Finance is known by a number of names including Factoring, Discounting, Receivables Finance, Invoice Financing and Cashflow Finance. All are designed to assist with business growth and expansion.
Will the Debtor Finance arrangement affect my existing bank loan?
Every business is different but in many cases, you will find that there is no further need for your overdraft as you will be receiving your money as soon as your invoices are generated.
Do I need to provide security?
You don’t need bricks and mortar, or real estate security. Our security is your receivables. As they grow, so does your debtor finance facility. Typically we see our risk with your customer as they are the entity that needs to make payment.
How do I qualify for Debtor Finance?
If you issue regular invoices for goods or services provided to other businesses and your sales turnover is between $20,000 p/m and $500,000 p/m (in receivables) you may qualify.
How does it work?
1. You raise your invoice as usual and send us a copy.
2. Within 48 hours of issuing your invoice, we will deposit up to 80% of the invoice value (less a pre-agreed fee) into your bank account.
3. The balance (less fees) is deposited into your bank account after the invoice is paid.