What is Debtor Finance?
Debtor Finance is when a business sells their invoices to a financier at a discount price to inject much needed cash into the business. With Debtor Finance, a business doesn’t need property collateral to qualify, instead the invoice itself is used as security.
How does Debtor Finance work?
Debtor Finance is easy to use. The work flow can be summarised as follows
- You receive a Purchase Order from your customer
- Complete work & deliver product
- Obtain evidence you have delivered product/service
- Raise Invoice
- Send Invoice to Customer and copy to Financier
- Financier Pays up to 90% of the invoice
- Financier waits for payment
- Once paid, financier gives you balance of invoice minus a small admin fee
– Flexible terms and structures
– Privately funded enabling faster setup times
– Funding available Australia wide
– Property security is not a requirement
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