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 […]
Factoring
Debtor Financing v. Overdrafts
Summary: 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 […]
What is Invoice Factoring?
Summary: 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 […]
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 […]