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 […]
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 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 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
Debtor financing is an umbrella term for two cash flow finance programmes called factoring and invoice discounting. These solutions allow your company to finance slow-paying invoices, which improves cash flow.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. […]
Differences Between Factoring and Invoice Discounting
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 choice between […]
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. Debtor […]
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. Debtor finance solves only one specific problem The most important limitation of debtor finance is that it solves only […]