Debtor financing transactions can be structured in various ways. In this article, we explain how the cost of a debtor financing transaction is determined by using the most common transaction structure. If you are not familiar with debtor financing, read “What is Debtor Financing?” before reading this article. What determines the cost of a transaction? The interest […]
How Does Debtor Finance Work?
Debtor financing has been gaining popularity in Australia as a way to finance small and growing businesses that need working capital. This solution allows you to finance slow-paying invoices, which provides immediate funds to pay for company expenses. This article explains how the debtor financing process works and helps you determine if it is the right financing […]
How are Invoice Verifications Done?
Debtor finance companies can finance an invoice only after it has been verified. This article helps you understand why invoices are verified and how the process works. Understanding debtor finance Debtor finance, also known as invoice factoring, is a type of business financing. It helps companies that have cash flow problems because their commercial clients are paying […]
Debtor Financing v. Overdrafts
Small companies that experience short-term cash flow problems often have few alternatives. Their available options often include getting funds from investors, a business loan, an overdraft facility or using a debtor financing programme. In this article, we compare debtor financing to an overdraft facility to help you determine which one is better for your business. What is […]
What is Invoice Discounting?
Invoice discounting is a form of debtor finance. It helps companies that have cash flow problems because customers are paying invoices in 30 to 90 days. Offering payment terms is expected when working with larger commercial and industrial customers. However, allowing customers to pay in 30 to 90 days can affect your cash flow if your financial reserves are […]
What is Invoice Factoring?
Invoice factoring is a type of debtor financing that allows a company to finance its accounts receivable ledger. This financing is often used by companies that have cash flow problems because their clients pay invoices in net-30 to net-60 day terms. Factoring has been gaining popularity in Australia as a way to finance small and medium-sized businesses. Are […]
What is Debtor Finance?
Debtor financing is an umbrella term used in Australia that encompasses a number of products that finance invoices. The most common debtor finance solutions are invoice factoring and invoice discounting. Invoice factoring and discounting are used by companies that offer 30- to 60-day terms to customers but have problems waiting for payments. Debtor finance works by funding […]
How to Understand Invoice Factoring Costs
Invoice factoring has been gaining popularity in Australia as tool to finance businesses that need to improve their cash flow. In this article, we help you understand how debtor finance companies evaluate your business to determine what factoring rates to offer. However, keep in mind that each factoring company has its own underwriting criteria. What affects factoring […]
How to Collect Invoices and Avoid Overdue Accounts
The invoicing and collections process is one of the most important jobs at any company. Growing companies have to be good at getting paid for their products/services. Timely payments provide you with the cash flow to pay wages, suppliers and other important expenses. Collecting unpaid invoices doesn’t have to take a long time or be tedious. With […]
Financing For Roofing Contractors
One of the challenges of working as a roofing contractor is that most clients pay you 30 to 60 days after you raise an invoice or progress claim. End employers and principal contractors often demand net-30 payment terms as a condition of working with them. However, this demand affects your cash flow and could affect […]