Debtor Finance allows a business to borrow against it’s trade debtors. The facility is targeted, to provide an alternative to an overdraft facility for a wide range of businesses across manufacturing and services industries with annual revenues between $1 million and $100 million. The facility provides an initial funding to the agreed percentage against the current acceptable debtors ledger. The regular funding is usually effected within 24 hours of the electronic presentation of a batch of invoices. Debtor Finance provides cash against invoiced credit sales, so businesses do not have to rely on the vagaries of debtor payments to provide cash flow.
Funding up to 90% of the invoice value of unconditional trade debts
No bricks and mortar property security required
Increasing funding levels as the business grows
Interest rates comparative with overdraft facilities
Confidentiality – Your client’s customers are unaware of the facility. Invoicing and credit management remains with the client
·BENEFITS TO A BUSINESS
The Working Capital provided by Debtor Finance improves a businesses cash position by enabling it:
To take on more business and finance, the additional production and sales and in turn make more profit
To refinance existing business finance facilities to more acceptable arrangements
To pay suppliers promptly and take advantage of discounts for prompt payment and bulk purchasing. This would also establish it as a preferred customer to its suppliers.
To finance additional stock
To discontinue prompt settlement discounts to its customers
To finance promotional activities to generate increased sales
Pay outstanding taxes
To offer extended terms of credit to its customers
* APPLICATION Information Required
To consider an Application we would require the following information:-
Latest Aged Debtors listing.
Latest Aged Creditors listing.
Last two years financials together with Management Accounts year to date
Australian Taxation Office latest running tax balance
Several copies of completed invoices together with supporting documentation, such as, orders, delivery dockets, contracts etc
Last three months bank statements
Brief profile on the business, how long operating, speciality of operations, number of staff etc
WHERE THE FACILITY CAN BE USED
In addition to providing Working Capital for profitable expanding businesses Debtor Finance can be applied to:-
Financial restructuring to release third party assets (such as directors homes) from securing business liabilities
Succession Planning. The directors of a large number of privately owned businesses are now approaching retirement
Fill out our contact form
now to find out how we can help You.
