Are clients paying their invoices in 30, 60 or 90 days? Is this delay creating cash flow problems? Slow payments can create financial problems for companies that can’t afford to wait that long for payment. It can affect your ability to pay suppliers, wages and other expenses. More importantly, it can affect your ability to grow.
Our two debtor financing solutions – factoring and invoice discounting – can solve this problem. We can improve your cash flow by financing slow-paying invoices. This financing provides the funds you need to pay business expenses and make new investments.
Commercial Capital is a leading provider of debtor financing in Australia. We can provide flexible plans at competitive terms. For more information or an instant online quote, submit an online enquiry.
Product selection and industry solutions:
Invoice Factoring
This solution helps small companies in all industries that cannot afford to wait up to 90 days to get paid by their commercial customers.
Manufacturing Finance
This product helps construction subcontractors operating under the Security of Payments Act who need to finance progress claims.
Labour Hire and Recruitment
This solution helps labour hire and recruitment agencies that need funds to cover the expenses of paying staff.
Progress Claim Finance
This product helps construction subcontractors operating under the Security of Payments Act who need to finance progress claims.
How does debtor financing work?
Debtor financing is an umbrella term describing solutions that improve the cash flow of a business by financing its accounts receivable ledger. The two most common debtor financing solutions are invoice factoring and invoice discounting.
Both solutions finance your business by providing you with an advance on slow-paying invoices. The advance improves your cash flow, which allows you to operate your business more effectively. The advance ranges from 80% to 85% of the value of the invoices and is based on your industry, company size and other criteria.
Generally, invoice factoring is offered to smaller companies who also need credit control services. Invoices are financed and tracked individually. Invoice discounting, on the other hand, is offered as a funding-only facility. It’s available to larger companies who already have credit and collections controls in place.
For more detailed information, read “How Does Debtor Financing Work?”
Advantages of debtor finance
Our programmes have a number of advantages over other solutions, including:
- Improves your cash flow
- Allows you to extend 30 to 60 days payment terms to clients
- Flexible line that grows with your sales
- No real estate security required
- Fewer collateral requirements than other solutions
- Easy qualification process
- Quick deployment
- Helps minimize your bad debt
Learn more about the benefits of debtor financing.
Overdrafts vs. debtor finance
Cash flow shortages often occur because your business has to pay bills quickly, while your clients pay you slowly. An overdraft can help you solve this problem. However, overdrafts can be inflexible and have hard limits. Furthermore, they are often secured by property, which can create problems for some business owners.
Debtor financing also solves cash flow problems but provides a more flexible solution. Since the financing facility is tied to your sales, it can easily accommodate growth. This flexibility helps ensure you always have working capital to cover business expenses. To learn more, read “Overdrafts v. Debtor Finance“.
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Additional resources
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