Why Businesses Choose Non-Bank Debtor Finance Over Bank Invoice Finance?

 In AR Mortgages, Cash Flow, Confidential Invoice Finance, Debt Collection, Debtor Finance, Entrepreneurs & Startups, Export Factoring, Inside AR Cash Flow, International Trade Finance, Invoice Collections, Invoice Factoring, Invoice Finance, Marketing, Port to Port Finance, Production Funding, Project Finance, Purchase Order Finance, Trade & Inventory Finance

Some significant differences between cash flow products offered by debtor financiers and products offered by bank providers.

Here is a list of some great reasons why clients choose non-bank debtor finance over bank products:


Smaller teams with a discretionary funding authority consistent with SME requirements. They know exactly who their chosen clients are and work that out pretty fast, giving a rapid answer. The funding is controlled and there is no need to go to a credit committee to approve a deal. Clients have a direct line to decision-makers giving you a quick result.


Smaller debtor finance providers are stocked with highly skilled and passionate workers who love debtor finance. You will be met with a high degree of experience in what you need help with. In larger institutions, you will find that they are stocked with younger less specialised staff who may or may not care or understand cash flow. They may have more credit background and be more interested in fixed assets and the trading history of your company.


Flexibility is the biggest reason clients go with non-bank funders over banks. Flexible in terms of advance rate and concentration. It may not sound that important, but in terms of cash flow, it is a massive positive.


There are several commercial risks that the financier is taking that cannot be controlled. Often the financing of invoices needs quite a bit of massaging to get them funded. This can sometimes go down to the wire, especially when payroll is due.

If the debtor financier is available to you directly, then you can always call in favours with them to get your working capital across the line.

Clients come into your office for requests such as limit increases the week of which they are required. Because you are usually available for existing clients, you can quickly assess the increase and give them results.


Finance companies (banks included) are businesses. They come and go just like any other type of business.

If you have a spread of financiers, and one pulls out then it is less likely you will have to shut your doors through no fault of your own.


We certainly look into the kinds of people and businesses we are doing business with. We prefer to do business with people who are trustworthy and honest. However, when it comes to actual credit risk, our focus is almost entirely on the strength of your customers.

We have a legal assignment over our debtors, making it quite a strong assignment. This also means it is legally a true sale of the receivable. 

Banks generally don’t do disclosed facilities. The downside for the bank is that their assignment is not necessarily at law but in equity only.

Let us know what you think.

For inquiries please call us at 0432 822 949, (02 8074 2674), or email him at [email protected].

Financing is just one phone call away!

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