Frequently Asked Questions
Debtor Finance provides a smart solution to help businesses improve their trading cash flow in order to:
- Turn invoices into immediate cash
- Access additional funds to enable growth
- Grow working capital in line with sales
- Reduce creditor pressure or gain settlement discounts by paying suppliers more quickly
- Replace existing restrictive finance arrangements
- Reduce reliance on a single finance provider
- Repay Shareholder or Director loans
- Develop a new area of the business
- Support the acquisition of a competitor or another business.
Our flexible and low maintenance Debtor Finance solutions provide:
- Up to 85% of invoice value in advance
- Confidential funding
- 24-7 online system to manage and process invoices and make payment requests at anytime for a seamless customer experience.
- Support across numerous business sectors and industries
- Access to decision makers, we want to understand our client's business and actively maintain open lines of communication with them.
To benefit from our Debtor Finance solutions, your business will:
- Sell its products or services on credit terms
- Have a turnover in excess of $1,000,000.00 per annum
- Have a borrowing requirement above $150,000.00
- Gain a performance benefit through a Debtor Finance arrangement
- Operate in industries such as Distribution, Manufacturing, Transport/Logistics, Printing, Labour Hire and other Business Services.
Debtor Finance solutions can be established for amounts starting from $300,000.00 to over $3 million.
At Classic Funding Group, we do not believe in treating you like a factoring client. You will be charged a fee against the amount borrowed under the facility that is comparable to overdraft rates. An additional service fee also applies to cover our costs of administration.
Debtor Finance works by providing your business with up to 85% of the working capital of both existing and newly raised invoices.
You continue to invoice your customers as normal and upload your sales ledger to our online platform we use. We then provide an advance payment to your business based on the value of the invoices for you, to use it as and when you need it.
You’ll collect your debts as usual under your standard trading terms with your customers. Once payments have been made and our fees are deducted, the remaining funds are made available to you through the facility.
Unlike a term facility, where your business makes monthly repayments towards an outstanding balance, a revolving facility fluctuates depending on the level of invoices outstanding. Your available working capital will vary and your loan is repaid via customer receipts, not repayments. You can upload invoices, request payment and view accounts at any time through our online portal. As your sales increase and you generate more invoices, more funds will be made available to you under the facility.
Absolutely not. At Classic Funding Group, we provide a 100% confidential funding facility. We will never interfere with your relationship with your customers – they will remain unaware of your funding arrangements.
You’ll issue your own invoices to your customers as usual, set the same terms, collect your own payments and manage the sales ledger as usual.
Yes, it will be easier for your business to obtain Equipment Finance. With an existing Debtor Finance facility in place you benefit from the surety of on-going cash flow as well as the benefit of having additional security.
In fact, you may be entitled to an automatic approval for $50,000.00 of Equipment Finance with the approval of your Debtor Finance facility. Additional credit can be made available if required.
Speak to one of our experts to find out how Debtor Finance can help your business:
Call: 1300 780 895