Summary: This article provides an overview of the typical financing rates for the two leading debtor finance products. It explains how debtor financing companies determine your rates and how those rates are applied in a transaction. We cover the following information: If you are not familiar with debtor financing, read “What is Debtor Financing?” to […]
Debtor Finance
How Does Debtor Finance Work?
Summary: Debtor financing is an umbrella term for products that finance accounts receivable. It’s typically used when referring to invoice financing or invoice discounting. Invoice financing, also known as invoice factoring, is suitable for small and medium enterprises (SME). On the other hand, invoice discounting is suitable for larger companies with an established track record. […]
How are Invoice Verifications Done?
Summary: 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. We cover the following: What is debtor finance? How are invoices verified? How are problem invoices handled? 1. Understanding debtor finance Debtor finance, also known as invoice […]
What is Invoice Discounting? How Does It Work?
Summary: Invoice discounting is a form of debtor finance that provides companies with a revolving line of financing secured by accounts receivable. It’s typically used by midsized companies that want to improve their cash flow. This article explains how invoice discounting works, its costs, and how it compares to invoice financing. We cover the following […]
What is Debtor Finance? How Does it Work?
Summary: Debtor financing is an umbrella term for products that finance accounts receivable. The most common debtor finance solutions are invoice financing and invoice discounting. Invoice financing and discounting are used by companies that offer 30- to 60-day terms to customers but have problems waiting for payments. It works by funding slow-paying invoices, which improves […]
How to Choose the Right Debtor Financing Company
Debtor financing is an umbrella term that refers to a number of cash flow financing products. The two most common debtor financing products are invoice factoring and invoice discounting. Companies use debtor finance because they have financial problems due to slow-paying clients. Often, they need to offer net 30 terms to clients even though they can’t afford […]
Debtor Financing Costs Explained
Summary: Debtor financing is an umbrella term products that finance your accounts receivable. The two most common products are invoice financing and invoice discounting. This article helps you understand the rates and fees associated with these two solutions. This article assumes that you are familiar with how factoring and invoice discounting work. We cover the […]
Differences Between Factoring and Invoice Discounting
Summary: Invoice discounting and invoice factoring offer financing based on your accounts receivable. Both products offer similar benefits to client. While there are similarities between these products, there are also a number of important differences. This article helps you understand the main differences between factoring and invoice discounting so that you can make an educated […]
Advantages of Debtor Finance
Debtor finance solutions have been gaining popularity in Australia as a way to finance growing companies that need cash flow. This article presents the most important advantages of this product to help you determine if this financing programme is right for your company. If you are not familiar with debtor finance, read “What is Debtor Finance?” first. 1. […]
Disadvantages of Debtor Finance
Like any business financing solution, debtor financing has a number of advantages and disadvantages. This article presents the most important disadvantages of this product to help you determine if this financing solution is right for your company. 1. Debtor finance solves only one specific problem The most important limitation of debtor finance is that it […]