What is Debtor Finance
Debtor finance, also known as Invoice Discounting or Cash Flow finance, allows you to unlock a large part of your outstanding or unpaid invoices so you can continue to fund and grow your own operations without waiting to be paid by your customers. It provides a smart solution to help your business improve its 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
Assists expansion of small-to-medium enterprise (SME)
Develop a new area of the business
Support the acquisition of a competitor or another business
How it works
Debtor finance works by releasing up to 85% of the working capital tied up in your existing invoices as well as new invoices when they are raised. You continue to invoice your customers as normal and upload your sales ledger to our online platform. We then provide an advance payment to your business, based on the value of the invoices uploaded, for you to use as and when you need. When your customers pay, the advance is repaid and the remaining 15% of the invoice is passed onto you, less our fees. Our debtor finance facility operates on a revolving basis so it will grow with your sales.
See how much you can raise and improve your cashflow using our simple Debtor Finance calculator tool*
* This calculator is indicative only. It is not an offer of finance. Terms, conditions, credit and approval criteria will apply.
Benefits of using Debtor Finance
Greater access to funds
Access up to 85% of your invoices within 24 hrs. Your funding limit increases as your sales grow.
Your trade partners do not know your finance arrangements. You retain control over your accounts and customer relationships.
No real estate security
Directors can release their personal property security.
No month-end reconciliations or reporting
Save time and sanity with our simple online portal.
Offers solutions to SME and Large Enterprises
Find out more about the benefits of Integrated Finance
There are circumstances where your business may benefit from Debtor Finance. This checklist will help you assess if it is suitable for your business.
Got a question about Debtor Finance?
If you have a question on debtor finance, please visit this page. If you don't find what you're looking for, feel free to chat with us during business hours.
Steel supplier gets Full Service Invoice Discounting
Finance solutions for the construction sector can be tricky to solve. An upcoming steel supplier based in Sydney was finding keeping on top of accounts payable and cash flow a challenge. Read how Cashflow Finance met their needs with a full service solution.
Helping to get the harvesting done
Our farmers depend on farm hands to make sure that each precious crop is harvested at the perfect time. With most farms away from populated areas, many will turn to reliable labour hire firms to help them find the best workforce. For those labour hire firms attracting good candidates means a strong emphasis on compliance and good business practices. Workers are usually paid weekly so this can put a strain on cashflow.