Why Romance Isn’t Dead In Debtor Finance: 3 Ways To Get Your Financier To Put Out

 In Debtor Finance, Invoice Factoring, Invoice Finance, Videos

Struggling to make your Debtor Finance relationship work?

It may be you are not nailing the key fundamentals to a successful Debtor Finance transaction.

Take a refresher course in our video below!

Video, Diagram and Transcript below

Key elements to successful Debtor Finance


Hi, I’m Daniel from AR Cash Flow. Today we’re going to talk about the key elements of successful debtor finance transactions.

So what’s the first one that you need to consider? The first one is make sure that you have quality customers. That means that they’re creditworthy and that they’re pretty solid. We’ve got a little diagram here, which Julia has drawn, of a little Superman, and that signifies the fact that it’s better to have a few quality customers or a decent spread of quality customers than thousands of bad customers who don’t pay your invoices.

So what’s the second component? The second component we like to look at is making sure you have solid paperwork. Now, what does that mean? What that means is the first component is having a purchase order. That is evidence that your customer has ordered the goods from you. The second important component is a delivery docket or some sort of proof of debt as we know it in the industry. Delivery dockets are usually used for when you’re delivering goods, not so much services. Another form of proof of debt might be some sort of sign-off on the product or services delivered, and that’s usually used in situations such as temporary labour hire where timesheets are usually signed.

The third component here is, of course, the obvious one, but I will say it anyway, is the invoice. So you do need to raise an invoice and give us a copy of that.

So there are the two first key components. The third one is one you might not think about so much, but it is probably the most important. That is having a good working relationship with your finance company. So, why do I say this? The reason I say this is because if you’ve got that good relationship with your financier, you’d be amazed at the things that they’ll do for you to help push your deals through or push your invoice financing through.

There you have it. There are the three critical components of successful debtor finance.

Hey, if you want to learn a little bit more about our products and services, check out our Facebook page at Facebook.com/ARCashFlowTrade or visit our website at www.ARCashFlow.com.au or call our 1300 number for an appointment straightaway.

Thanks for watching.



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