Debtor Finance
Improve your small business cash flow, and increase working capital through a range of factoring and invoice discounting facilities. By using Debtor Finance - an immediate injection of cash is available to your small business against the value of your outstanding debtors.
Debtor Finance can also be referred to as Invoice discounting, factoring, cash flow finance, asset finance, invoice finance and working capital finance. According to the Institute of Factoring and Discounters Australia’s annual turnover of debtor finance solutions is exceeding over $50 billion annual turnover. As a market it has grown steadily over 15% plus per annum and has replaced traditional overdrafts or fixed termed business loans for Australian small businesses who are seeking immediate and ongoing business finance. This product has helped many businesses grow above the annual rate because they have had substantially better cash flow than their competitors.
HOW DOES IS WORK?
Traditionally most small businesses offer terms of credit which can take, on average, up to 60 days to be paid. This process can delay essential small business cash flow and restrict the growth of the business.
Instead, with a debtor finance product, you raise an invoice and up to 90% of the invoice value is made accessible within 24 hours. The remaining 10% is paid to you, less a small service fee, when payment is received from your customers.
Most debtor financiers will fund business invoices for up to 90days from the month that the invoice was issued. A specific type of Export Factoring is also available for companies and small businesses who deal predominately with overseas transactions.
Debtor Finance products work in two ways;
- 1. Confidential; Where the customer is unaware that the funding is being provided (sometimes called Invoice Discounting)
- 2. Disclosed; Invoice have a notice on them that warns the customer to pay the funds into the financier's account. This can often jeopardize the working relationship between customer and supplier.
Quest Corporate Services, through our network of suppliers, specialises in providing confidential invoice finance. Quest can provide business finance where most can't, and offers the provisions and flexibility of major banks, while still maintaining a level of personal customer service. These unique products improve business cash flow, enabling more rapid small business growth and ultimately will increase your business profit.
Find out in 15 mins. if Quest can assist your business cash flow, call 1300 311 411.