Use of Debtor Finance continues to grow

Debtor Finance

The Debtor & Invoice Finance Association 2015 September quarter statistics show businesses are continuing to use debtor finance in their cash flow management strategy.

Australian businesses are increasingly becoming more aware and accepting of debtor finance as a mainstream funding alternative, as evidenced in the latest statistics released by DIFA. Increasing by 1.8% on the same quarter last year, the total Debtor Financing turnover in the September 2015 quarter was $15.8 billion, with Invoice Discounting making up 91.7% of this total. 

Debtor Finance is increasingly being considered a viable option to raise capital for new ventures, management buyouts, ATO debt repayments and expansion strategies, particularly in the wholesale and manufacturing sectors. The trend is hardly surprising, considering that businesses can use their debtor's ledger to raise capital, without the need to use real estate as security or changing their accounts processes. 

Businesses interested in finding out more about Debtor Finance as a capital raising option can contact the Business Solutions team at Classic on 1300 780 895.